Question
Which of the following statements about Real-World Assets (RWA) Tokenization are correct?
1. It turns real-world assets into digital tokens using blockchain.
2. It offers 24×7 access, promoting financial inclusion.
3. It allows access to high-growth investment opportunities for individuals in India.
Explanation
Statement 1 — Correct: Real-World Asset (RWA) tokenization converts ownership rights or claims over assets such as real estate, gold, commodities and bonds into digital tokens recorded on a blockchain or distributed ledger. A token can represent a fraction of the underlying asset.
Statement 2 — Correct: Tokenized assets can potentially be traded 24×7 across borders with faster settlement. Tokenization also enables fractional ownership, allowing investors to access assets that traditionally require large amounts of capital. This can help promote financial inclusion.
Statement 3 — Correct: In India, RWA tokenization is being explored for areas such as real estate and infrastructure. The IFSCA has also permitted experimentation with tokenization-related solutions through its regulatory sandbox framework.
Therefore, all three statements are correct.