# What are RWA (Real-World Assets)?

RWA stands for real-world assets. These are physical, tangible things that are considered valuable in the traditional financial system - such as real estate, precious metals, works of art or commodities.For example, if you invest in a property or buy precious metals such as gold, then you are dealing with RWA. But how does this connection to blockchain and crypto come into play?

Quite simply, Solidum and other similar platforms make it possible to convert such real assets into digital tokens. So you could trade a share in a building or a small amount of gold as a token on a blockchain without having to own or manage the physical asset itself.

This opens up a whole new world of investment opportunities. The idea behind this is that the tokenization of RWAs makes these assets more liquid and accessible.

For example, someone could buy a token equivalent to a fraction of a building. These tokens could then be traded on a marketplace, just like cryptocurrencies, without the need for a real estate broker or banking process. Access to these markets is also global, so investors from all over the world can participate.


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