Real-World assets (RWA) tokenization is a recent trend making waves in numerous traditional industries. The potential of RWAs is immeasurable. Take art, for instance. With RWAs any art enthusiast can own a piece of a Picasso through tokens, democratizing access to world-class artworks.
Another example is finance. Imagine tokenized shares of private companies accessible to retail investors, or collective ownership of real estate portfolios traded on global exchanges. Traditional institutions like investment banks could face disruption, replaced by efficient, automated platforms.
In terms of real estate, tokenized properties become instantly tradable, boosting liquidity and unlocking financing opportunities. Collective ownership opens doors for smaller investors, while smart contracts automate tasks like rent collection and maintenance.
Many companies have already adopted this RWA tokenization trend, pioneering this seismic shift in ownership. We offer you to dive into an overview of such companies from the aforementioned traditional industries. But first, let’s refresh your understanding of Real-World assets tokenization.
What’s RWA tokenization
Real world asset tokenization turns physical assets like art into digital tokens for easier trading and collective ownership on blockchains.
Think of it like dividing a pie into bite-sized pieces, making previously illiquid assets accessible to many. Benefits abound increased liquidity, 24/7 trading, and even automated asset management, all thanks to the transparent and secure nature of blockchains.
Top RWA Tokenization Companies
We analyzed three traditional industries that have already adopted RWA tokenization, including art, finance and real estate, and highlighted the platforms with the biggest potential to revolutionize the industry. We also put these platforms on the map for clarity.
Art
10101.art is making waves in the art world by offering co-ownership of famous paintings through blockchain. They use tokens to digitally represent ownership shares in renowned artworks by masters like Picasso and Dali. This innovative approach allows more people to be a part of owning and appreciating these valuable pieces, while 10101.art prioritizes legal security for these new ownership structures.
Masterworks is a platform for fine art founded in 2017. It allows people to purchase interests (or shares) in a painting, just like you can buy a share in a company. This way, virtually anyone can own shares of masterpieces painted by Picasso, Monet, and Warhol.
Italian startup art rights allows artists to sell and manage art through NFTs. The startup enables artists to create Arts Rights Certificates to prove the authorship, provenance, and authenticity of digital artworks. Further, it features a legal system compliant with copyright law with verified users and data via blockchain. art rights also connects artists with collectors, galleries, and museums.
Active Image is a German startup that builds an NFT-powered art marketplace. The platform provides digital uniqueness with NFT and smart contracts as well as protects lasting value for artists and collectors. Verification and recognition technologies on the startup’s app confirm the authenticity and identify fraud.
Art de Finance is a Web3 platform that merges the traditional art world with cryptocurrency and blockchain. They aim to empower artists and collectors by offering a comprehensive suite of services including an NFT marketplace for digital and physical art, social features for art communities, authentication solutions, secure storage for physical pieces, and DeFi services specifically for NFTs.
ART3 dives deep into the world of photography within the metaverse. They act as a bridge for photographers, both established and up-and-coming, by curating and auctioning NFT collections of their work. They also provide educational resources to help photographers navigate the world of NFTs, and prioritize sustainability by using an eco-friendly minting process for NFTs.
Real Estate
ProprHome is a real estate marketplace built on trust using blockchain technology. They aim to create a smoother experience for both agents and buyers. Agents can build their credibility and access helpful tools, while buyers benefit from a secure, transparent search with verified properties and clear offer records.
RealT lets you own a piece of real estate for as low as $50. Their platform uses blockchain to make buying, selling, and managing ownership simple. You can buy tokens (RealTokens) that represent ownership in a company that holds the deed to the property. These tokens can also potentially generate rental income.
SoluLab isn’t a real estate tokenization platform itself, but rather a developer that builds them. They specialize in the tech behind real estate tokenization, creating secure blockchain platforms, writing smart contracts to automate processes, and ensuring compliance with relevant regulations. Basically, they help businesses set up their own real estate tokenization systems.
Finance
Securitize is a platform for creating and managing security tokens, which are digital slices of ownership in financial assets like stocks or bonds. Their focus is on regulatory compliance and offering a comprehensive suite of tools for the entire token lifecycle. This includes features like their DS Protocol for smooth trading across markets. They aim to help companies raise capital more efficiently, increase asset liquidity through tokenization, and streamline compliance in the security token space.
Polymath is a security token platform. They focus on creating and managing security tokens while ensuring strict adherence to regulations. Polymath offers a comprehensive suite of tools for the entire token lifecycle, from issuance and management to investor onboarding, making them a valuable resource for companies seeking to raise capital through compliant security token offerings.
Harbor is a security token platform designed for a broad range of financial instruments. They cater to companies looking to issue security tokens representing ownership in assets like stocks, bonds, or even funds. Similar to Securitize and Polymath, Harbor prioritizes regulatory compliance and offers a comprehensive platform for the entire security token lifecycle, encompassing issuance, management, and potentially secondary trading on compliant marketplaces.
The Future of RWA Tokenization
According to the research conducted by Boston Consulting Group, the field of global illiquid assets could transform into a $16 trillion industry by 2030. The future of Real-World asset tokenization is poised for exponential growth, as projections indicate an era where traditional boundaries between physical and digital assets continue to blur. The momentum gained by blockchain technology and RWA tokenization is expected to propel the market into new dimensions.