Real-World Assets (RWAs) are tangible assets (for example, a digital token for gold) used in the blockchain space. Tangible means that something is used in a digital form, but it also exists outside the digital world, such as currencies, equities, communities, and bonds. In other words, RWAs mirror physical financial assets. In the digital asset industry, RWAs are becoming popular, and more projects like bringing cash into the blockchain system are coming to light.
In theory, anything can be turned into an RWA and brought into the blockchain ecosystem, but it needs to have value, for example, like real estate. RWAs are considered to be a potentially good investment and market opportunity in blockchain. However, some jurisdictions still lack regulatory compliance rules for real-world assets, and, for this reason, despite RWAs presenting potential benefits and transparency, this industry has its challenges.
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