Which of the following statements about Real-World Assets (RWA) Tokenization are correct? 1. Tokenization is the process of turni…

Question

Which of the following statements about Real-World Assets (RWA) Tokenization are correct?

1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.

2. Tokenization of real world assets offers 24×7 access, promoting financial inclusion.

3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.

1. A. 1, 2 and 3 (Correct answer)
2. B. 2 and 3 only
3. C. 1 and 2 only
4. D. 1 and 3 only

Correct Answer

Option A — A

Detailed Solution & Explanation

The correct answer is Option A.

Key Points

• statements 1, 2 and 3 are all correct.
• Real-World Asset (RWA) tokenisation issues blockchain-based digital tokens that represent ownership or a share in a physical or financial asset (real estate, bonds, gold, art).
• Statement 1 is correct: it is precisely the process of converting real-world assets into digital tokens on a blockchain.
• Statement 2 is correct: tokenised assets can be traded 24×7 on digital platforms and in fractional units, lowering the ticket size and promoting financial inclusion.
• Statement 3 is correct: fractionalisation opens access to high-value, high-growth assets (like commercial property or infrastructure) that individual investors could not otherwise afford whole.
• benefits include liquidity for traditionally illiquid assets, fractional ownership and transparent on-chain records; risks include regulatory and valuation uncertainty.

Exam Tip

• the recurring themes examiners test for tokenisation are fractional ownership, 24×7 liquidity and financial inclusion — all three appear here.