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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.
Select the answer using the code given below:
Explanation
Statement 1 is correct: Real-World Asset (RWA) tokenization is the process of converting physical or traditional assets (like real estate, art, commodities, or bonds) into digital tokens on a blockchain. Each token represents a proportional ownership stake in the underlying asset.
Statement 2 is correct: Blockchain networks operate continuously, offering 24 × 7 access to trading and liquidity. By enabling fractional ownership, tokenization lowers the barrier to entry, thereby promoting financial inclusion for retail investors.
Statement 3 is correct: Tokenization democratizes access to high-growth and traditionally illiquid investment opportunities (such as premium commercial real estate or private equity) for individuals in India and globally, allowing them to diversify their portfolios with smaller capital outlays.