GLOSSARY · BLOCKCHAIN & WEB3
What are real-world assets (RWA)?
What is RWA in crypto? Real-world assets such as bonds, funds, real estate or gold, as tokens. Types, EU rules and how they differ from risk-weighted assets.
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Real World Assets: definition
In crypto, RWAs (real-world assets) are assets that exist off the blockchain, such as bonds, fund units, shares, real estate, commodities like gold or receivables, represented by tokens. The token is not the asset: it is the way a right over the asset is recorded and transferred, and that right is governed by whatever law applies to it. If the right is a security, the token is a security token. In banking, RWA stands for something else: risk-weighted assets.
RWA in banking: risk-weighted assets. Under the Basel framework, a bank must at all times hold Common Equity Tier 1 capital of at least 4.5% of its risk-weighted assets, Tier 1 capital of 6% and total capital of 8% (RBC20.1). In the EU those minimums are in Article 92(1) of Regulation (EU) No 575/2013 (CRR), which calculates them over the total risk exposure amount (Article 92(2)). The two meanings meet: under the Basel crypto-asset standard (SCO60, applicable from January 1, 2026), a tokenized traditional asset that meets the conditions goes into Group 1a (SCO60.6) and is generally risk-weighted the same as the non-tokenized asset. For example, a tokenized corporate bond in the banking book carries the same risk weight as the traditional bond (SCO60.27). RBC20 and SCO60 are Basel Committee standards, not EU law.
Types of tokenized RWAs and their EU framework.
| Asset | What the token usually represents | EU framework |
|---|---|---|
| Bonds and debt | The debt security itself | Transferable security under MiFID II (Annex I, Section C(1)); MiCA does not apply (Article 2(4)(a)) |
| Funds, including money market funds | Units or shares of the fund | Financial instrument (Annex I, Section C(3)) |
| Equity | Shares of a company | Transferable security (Annex I, Section C(1)) |
| Real estate | Shares or debt of the company that owns it; not the property itself | MiFID II if it is a transferable security; ownership still follows the Civil Code and the Land Registry |
| Gold and other commodities | A right over metal held in custody, or a value referenced to it | If it aims at a stable value referenced to the commodity, an asset-referenced token (MiCA Article 3(1)(6)), unless it is a financial instrument |
| Private credit and invoices | Receivables or notes | Transferable security, money market instrument or other: assessed case by case |
How the applicable law is decided. ESMA's guidelines on the qualification of crypto-assets as financial instruments (March 19, 2025) call for substance over form: if the token gives rights equivalent to those of a share or a bond, it is a transferable security and the same rules apply as to a traditional security (Guideline 2). Since March 23, 2023, the MiFID II definition of financial instrument expressly includes those issued by means of DLT (Article 4(1)(15) of Directive 2014/65/EU, as amended by Article 18 of Regulation (EU) 2022/858). In Spain, a security represented on DLT needs an issuance document and one or more entities responsible for registration and recording (ERIR) (Arts. 7 and 8 of Law 6/2023). For a first view of a specific case, use our MiCA or MiFID II classifier; the details are in MiCA vs MiFID II.
What changes and what does not. Tokenization makes it possible to split economic rights, automate payments with smart contracts and enforce controls on the token itself, such as whitelists of identified investors. It does not create demand on its own, and it does not replace the issuer's authorization, the prospectus or the applicable exemption (Regulation (EU) 2017/1129), or the official registers: in Spain, ownership of real estate passes by contract and delivery (Arts. 609 and 1462 of the Civil Code), and what is not recorded in the Land Registry cannot be enforced against third parties (Article 32 of the Mortgage Law).
RWA in DeFi. In the crypto ecosystem, RWAs are also used as loan collateral or to back yield products. Before accepting them, check what right the token gives, who holds the asset in custody and what happens if the issuer or the custodian fails. A case of tokenized government debt is covered in our analysis of Ondo Finance.
Official sources: Basel Committee, RBC20; Basel Committee, SCO60; Regulation (EU) No 575/2013 (CRR), Article 92; Directive 2014/65/EU (MiFID II), Article 4 and Annex I; Regulation (EU) 2023/1114 (MiCA), Arts. 2 and 3; ESMA guidelines, March 19, 2025; Law 6/2023, Arts. 7 and 8 (BOE); Spanish Civil Code, Arts. 609 and 1462 (BOE).
Framework verified as of October 13, 2026. At Unknown Gravity we handle the technical side of RWA tokenization: the platform, smart contracts, transfer controls and integrations, working alongside the client's legal counsel and the authorized entities each case requires (ERIR, CASP or DLT infrastructure). Talk to us.
Learn more: What is asset and company tokenization: a complete guide
Explained simply
It is like putting the rights over a bond, a fund, an apartment or a gold bar inside a crypto app, within the law, so you can buy, sell or invest in a part of those rights without having to buy the whole asset.
For example, instead of buying a whole apartment you can hold a stake in the company that owns it, represented by a token. The blockchain makes that record quicker to handle and easier to split, but it does not change the law: in Spain, ownership of real estate passes by contract and delivery (Arts. 609 and 1462 of the Civil Code), and what is not recorded in the Land Registry cannot be enforced against third parties (Article 32 of the Mortgage Law).
Real World Assets: key points
- In crypto, RWAs are real-world assets represented as tokens
- In banking, RWA stands for risk-weighted assets (Basel; CRR Article 92)
- The token represents a right over the asset, not the asset itself
- If the token is a financial instrument, MiFID II applies and MiCA does not (Article 2(4)(a))
- Basel: a tokenized traditional asset is generally risk-weighted like the original (SCO60.27)
Real World Assets: advantages
- Split and transfer illiquid assets, if there is a market where they can be traded
- Automate payments and transfer controls with smart contracts
- Transparency and traceability of token movements
Real World Assets: disadvantages
- Reliance on the legal structure and on traditional registers
- Regulatory risk if the token is misclassified
- Issuer and custodian risk: the token is worth what the right behind it is worth
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