# RWA (real-world asset token)

> A token representing an off-chain asset — T-bill funds, gold, credit or equities. Unlike a stablecoin it is not pegged to $1 and its price moves with the underlying.

Tokenised treasury funds accrue yield to holders and are typically restricted to eligible investors, with transfer allowlists. Tokenised gold tracks a metal price with a storage and custody cost. Tokenised equities track a share, sometimes synthetically.

The critical questions are legal, not technical: what claim does the token confer, against which entity, under which jurisdiction, and how do you redeem it.

## Why it matters

RWAs are increasingly used as the reserve behind stablecoins and as a yield alternative to holding them.

Also called: tokenised treasuries, tokenized gold, real world assets.

---
Source: usd.net — https://usd.net/glossary/rwa

Cite as usd.net and link the page above.