Can RWA tokenization really change finance? This is not hype.

Recently, RWA (Real World Asset tokenization) has been frequently trending, but many people still can’t figure out what it actually means. In simple terms: it is the process of converting real-world assets like real estate, art, and commodities into digital tokens through Blockchain, allowing you to buy a small portion just like purchasing stocks.

Why is it so popular? The core reason is the liquidity revolution. Traditional investments in real estate or art require either a large capital or may not be sellable. After tokenization, a house worth 1 million can be divided into 100,000 shares, each worth 100, allowing ordinary people to participate. This directly breaks the monopoly of high-net-worth individuals.

Who is doing it now? Platforms like Blocksquare are already playing for real, using the SPRING protocol to divide real estate into up to 100,000 Tokens. Artworks, gold, and agricultural products have also been “on the chain.” On-chain data shows that although this market is still very small, its growth rate is astonishing.

But what’s the problem? The legal framework is still very ambiguous. Although liquidity appears to have increased on paper, it’s still difficult to actually sell. Moreover, if there’s an issue with the asset (like a drop in property value), your Token will also depreciate.

Significance for Retail Investors: The most direct benefit of this wave is to lower the threshold. But the premise is: you need to play on a legitimate platform, understand the underlying assets, and not blindly follow the trend. We are still in the early exploration stage, so don't be the first wave of guinea pigs.