Real World Asset Tokenisation: The Future of Investing

Imagine owning a piece of a famous painting or a commercial property 😍

Now, before you go slicing/cutting up priceless paintings - we didn’t mean that literally! 🙅

We were actually referring to fractional ownership. This is the concept of owning a small portion of a high-value asset, like a piece of art, real estate or even a private jet, instead of buying the entire asset yourself, and it is made possible through the tokenisation of real world assets.

What are Real World Assets (RWA)?

Real World Assets, also known as RWAs, are digital tokens that represent traditional/physical assets which can be tangible (such as fine art, luxury goods, precious metals) or intangible (government bonds, carbon credits, air rights, etc). Unlike virtual assets which exist solely in the digital realm, RWAs have a physical presence and/or real-world functionality.

In a time when everything from stocks to art can be traded online, RWAs continue to hold their own. This could be attributed to them offering a unique combination of utility, aesthetic appeal, historical significance, emotional attachment and limited supply/scarcity.

The value of an RWA is usually based on market price or appraised value. In the realm of web3, it may also be impacted by factors such as the credibility/legitimacy of the tokenising authority, the asset’s performance and market outlook.

What is (RWA) Tokenisation?

Tokenisation is the process of converting real world assets into tokens on a blockchain, which allows them to become digital proof of ownership representing a particular asset. Tokenised RWAs are divisible, allowing users to own smaller portions of high-value assets, as they are more affordable and accessible.

Real Life Examples of Real World Assets

In theory, many types of real-world assets can be tokenised, including financial instruments, stablecoins, real estate, art and collectibles, commodities (oil, precious metals, etc), infrastructure, luxury goods and intellectual property.

Here are some compelling use cases of RWA tokenisation:

• Titanic Distillers Whiskey: Want to invest in still-maturing Irish whiskey? CaskCoin issues Ethereum-compatible utility tokens to enable legal ownership of limited-edition cases of Titanic Distillers Whiskey.

• The St. Regis Aspen Resort: This full-service luxury hotel located in Aspen, Colorado, aims to build a borderless marketplace for real estate investments, and has distributed Aspen Coin, a digital security token offering, to investors.

• Pax Gold: PAXG is a digital token backed by physical gold, which gives investors a secure and cost-effective way to own investment-grade physical gold, which is held in custody by the Paxos Trust Company and stored in vaults accredited by the London Bullion Market Association (LBMA).

• Toucan Protocol: What if fighting climate change could be made easier through blockchain technology? Toucan converts carbon credits into digital tokens, making it easier to trade them. This encourages more people to adopt climate-friendly projects, and allows for innovative uses of carbon credits.

Benefits of RWA Tokenisation

Tokenisation of RWAs offers several advantages:

• Fractional Ownership: Fractionalising assets which are traditionally harder to access makes them more liquid and accessible to a wider range of investors; this can potentially unlock trillions of dollars in value.

• Liquidity and Accessibility: Tokenising RWAs makes them more liquid and accessible to a wider range of investors.

• Transparency: Blockchain technology provides greater transparency into asset ownership and value, reducing the need for intermediaries and streamlining processes.

• Potential for New Products: Tokenised RWAs can be used to create innovative financial instruments, such as rental yield tokens and decentralised lending platforms.

• Bridge the TradFi-Web3 divide: RWAs offer a seamless integration between traditional finance and Web3, unlocking the potential of blockchain technology for real-world assets.

• Reduced Costs: Automation and reduced reliance on intermediaries can lead to fewer errors, faster transactions and significantly lower costs.

Multipli fi: Earn Yield on Real World Assets

Multipli fi is a revolutionary yield generation platform that offers investors the opportunity to earn returns on a diverse range of assets, including real-world assets. By leveraging blockchain technology, Multipli provides a transparent and efficient way to dabble in a variety of asset classes, democratising access to previously exclusive opportunities.

RWA tokenisation shows that even the most traditional assets can get a taste of the crypto craze. From fractional ownership of fine art to investing in real estate without leaving your couch, the possibilities seem endless.