Last Updated: November 18, 2025
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Tokenization is changing how capital flows into real-world assets. What began as a fundraising tool through Security Token Offerings (STOs) has evolved into a broader infrastructure trend, enabling fractional ownership, yield access, and on-chain transparency across diverse asset classes.
This article explains how tokenization works, compares tokenized RWAs with crypto‑assets, and highlights major tokenization use‑cases (with examples).
Key Takeaways
Tokenization of real‑world assets (RWAs) refers to the practice of creating digital tokens that represent ownership or rights in physical or financial assets (for example government bonds or a real‑estate tranche). Originally many use‑cases focused on Security Token Offerings (STOs) as a form of fundraising. But today, tokenization increasingly spans broader use‑cases: access, income generation, fractional ownership, liquidity and programmability.
Tokenization involves a series of steps to create digital representations of real‑world assets:
Through these steps, the tokenised asset typically offers improved accessibility (fractional units), transparency (audit trail on‑chain), and transferability compared to many traditional structures.
In this section, we will explore 6 predominant use‑cases for tokenized real‑world assets, including:
Tokenizing real estate is one of the most promising applications of blockchain technology. Traditionally, real estate has been accessible mainly to high-net-worth investors due to the significant capital required. Tokenization breaks down these assets into smaller, more affordable units, enabling wider participation. Tokenized real estate can also be traded on blockchain networks, significantly enhancing market liquidity.
A recent example includes DAMAC Properties in Dubai, with Dubai’s Prypco Mint reported that it fully funded the DAMAC tokenized property in less than 24 hours with 224 investors from over 40 nationalities. (Cryptopolitan)
Another example is World Liberty Financial, which announced plans to tokenize real estate assets through blockchain technology, and aims to offer micro-shares in luxury properties globally. The platform intends to provide access to stabilized income-producing properties and will initially focus on multifamily housing assets. Token holders will be entitled to proportional distributions and asset appreciation. (CoinMarketCap Academy)
Tokenised U.S. Treasury securities have emerged as one of the largest RWA categories on‑chain. For example, as of November 2025 the total value of tokenised U.S. Treasuries was approximately USD 8.57 billion (RWA.xyz). These tokens typically offer institutional investors access via digital formats while retaining the underlying asset’s regulatory clarity and credit profile.
A specific example: the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) had a market cap of ~USD 2.52 billion under tokenized Treasury format.
Tokenizing commodities is a highly sought-after application of blockchain technology. Commodities, including gold, silver, various metals, and oil, are valuable assets traded globally. By utilizing tokenization, these commodities can be traded on blockchain networks, introducing enhanced transparency and security that traditional commodity trading lacks. Additionally, the costs associated with tokenization are relatively low compared to the substantial overhead expenses typically found in the commodity exchange market, despite the ongoing transition toward paperless transactions.
For instance, a trust can be established to securely hold a vault of gold under the custody of a licensed custodian. This trust can then be tokenized, with each token representing proportional ownership of the gold stored within. Token holders have the option to redeem their tokens for gold and can also trade these tokens on secondary exchanges, further enhancing liquidity.
According to RWA.xyz, the market capitalization of commodity-backed tokens surpassed $3.5B in November 2025. Gold remains the dominant commodity, with tokenized precious metals like Tether Gold (XAUT) and PAX Gold (PAXG) accounting for ~80% of the market cap for commodity-backed tokens.
Tokenized stocks are digital representations of publicly listed equities issued on blockchain infrastructure. These tokens can mirror an economic interest or ownership right of underlying shares, and are structured to comply with applicable securities regulations. They aim to provide greater accessibility, faster settlement, and broader market participation.
On June 30, 2025, Robinhood launched tokenized U.S. stocks for EU customers through a partnership with Arbitrum, offering blockchain-based access to equities for eligible investors across multiple jurisdictions (Yahoo Finance).
Nasdaq, a major American stock exchange, has outlined proposals for tokenized securities to enable more flexible and transparent capital markets infrastructure (Nasdaq).
Debt tokenization is a prevalent application of tokenization. It encompasses assets such as bonds and loans, which can be challenging to trade. By tokenizing these debts, fractional ownership can be sold to investors, offering borrowers a new avenue for raising capital while providing investors with an additional asset class to explore.
For instance, DBS Bank has issued debt in various currencies, including a $500 million subordinated debt offering in U.S. Dollars in March 2021. Furthermore, DBS commands a 34% share of the SGD debt market, having issued SGD $5.85 billion in 2019.
In 2021, DBS launched its inaugural tokenized bond valued at SGD $15 million, which was fully subscribed through the DBS FIX Marketplace. This platform is fully digital and automated, facilitating fixed income transactions while managing the associated legal, operational, and sales-related data flows and documentation. It allows investors to participate with a minimum investment of $10,000, making it significantly more accessible than traditional bond issuances, which typically require a minimum investment of $250,000.
A recent example of a tokenized bond is OCBC’s bespoke tokenized issuance. In January 2025, OCBC became one of the first banks in Singapore to offer customized tokenized bonds to corporate accredited investors.
Overall, the interest in tokenized debt issuances is growing among corporations, particularly in Asian and European markets, due to their size and duration.
Intellectual property (IP) tokenization refers to the process of representing ownership or licensing rights to creative works, such as films, music, and trademarks through digital tokens on a blockchain infrastructure. This structure enables more flexible management and distribution of IP rights, often across a broader and more distributed base of qualified participants.
One example is the feature film "Demon Hunters: Confession", which is structured on IXS as a tokenized media property. Ownership rights to the project are recorded and distributed via a digital security token, with governance, compliance, and reporting processes embedded into the token structure (IXS News).
Tokenization is revolutionizing alternative assets like private equity, venture capital, and hedge funds. Traditionally inaccessible to many, tokenization democratizes access by enabling fractional ownership, creating new opportunities for portfolio diversification.
A notable example is $CKGP. CKGP is a specialized portfolio curated by Coach K, a prominent figure in GameFi and DeFi. It offers investors exposure to a diversified basket of GameFi projects, selected for their potential to generate significant returns. By investing in CKGP, participants tap into Coach K’s expertise, gaining access to a high-potential portfolio of GameFi tokens.
Learn more about CKGP’s successful raise here.
Tokenization can strengthen investor protections if well executed. While tokenization does not eliminate credit, market, or operational risk, it can provide enhanced clarity and fractional access. To begin, we recommend institutions evaluate the following elements as a minimum starting point:
While RWA tokens and cryptocurrencies both utilize blockchain technology, there are fundamental differences between them.
Tokenization is a powerful tool that is unlocking new opportunities across the financial landscape. Initially focused on fundraising, tokenization now covers a wide range of real-world assets, including real estate, art, commodities, debt, ESG products, and alternative assets. As the technology continues to evolve, tokenization will play a critical role in shaping the future of finance.
IXS offers comprehensive solutions for those interested in issuing RWA tokens and conducting STOs, and is also a leader in democratizing these investments for retail investors. Join us in shaping the future of tokenization and explore the myriad opportunities it presents.