The real-world asset (RWA) market has emerged as one of the major trends in the cryptocurrency industry in 2025, along with companies that jump to the bandwagon of tokenization.
Although some Studies are directed to a massive 260% RWWA increase This year, some industry executives have asked the size of the reported market size, which is focusing that the The sector is too nascent and relatively small.
Cointelegraph industry executives say slow adoption can come from outdated regulations, limited access to and widespread misunderstandings of how tokenized assets are backward.
However, the question of RWA -backing is not only one technology, but subject to other considerations.
“Not only code” – legal RWA Foundation
The question of backing to RWWA is important because the The tokenization platform is turned -backsaid to the cointelegraph.
“For real-world assets such as tokenized equities, trust depends on how the product is structured and how transparent and controlled the providers,” Levi said.
When reviewing Finance RWA tokens such as Back Xstocks issued, it is important to understand that their backing is more than a technology question, according to Levi.
“This is a legal and financial,” he said, adding that the guarantee is the binding legal obligation to bind to maintain full backbone and transparent release and redemption mechanisms, governed by clear regulations:
“Technology – secure intelligent contracts, tech platforms and care integration – are also important, but confidence in financial products comes from implemented promises under strong frameworks regulations. The foundation is legal, not just code.”
Tzero’s executive vice president Alan Konevsky, said RWA’s tokenization, especially those Based on physical objects such as real estate or collectivity, cannot be a completely automatic process.
“Financial instruments, perhaps in particular if it is also tokenized, can be completely automatic,” he said, adding that the tokenization of physical possession requires the intermediation of traditional market participants.
Legal Part Not a 100% guarantee
RWA Backing is a real issue for the industry, but it’s not unique to crypto, as similar challenges exist in traditional investment such as real estate, StoBox co-founder Ross Shemeliak said in cointelegraph.
“Tokenization is just a scheme of investment here,” Shemeliak said, concluding that the responsibility that is currently falling into tokenization providers, which performs enhanced diligence and reviews those who offer memorandum, basic possession and legal restrictions.
“However, this is not a 100%safety guarantee: Complex verification can sometimes lead to service providers to launch scam projects,” he said, suggesting a solution in the form of data-rich RWA tokens, where smart contracts hold repository data and property details directly to the blockchain.
What are RWA tokens rich in data?
According to Shemeliak, RWA tokens rich in data not only represent ownership, but are embedded or link to structured, dynamic data about property, such as appreciation, legal status and other data.
“It creates a new level of transparency, interoperability, and investor confidence, something traditional security and early stage tokens are often lacking,” he said.
Among the examples of the token technology industry rich in data, Shemeliiak noted Proof-of-resertion of chainlink and crosschain interoperability protocolimplemented by platforms such as backed finance, maple finance and centrifuge.
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In addition, Stobox found that the top five jurisdictions for running a deal in tokenization were the British Virgin Islands, the US state of Wyoming, Liechtenstein, Singapore and the Marshall Islands.
“Despite among the top five in terms of quality of regulation and efficiency, Singapore and Luxembourg remain no longer -underutilized as special goals of vehicle destinations for tokenization deals: They cost less than 2% of global deals,” Stobox said in a report of the tokenization of the tokenization shared with cointelegraph.
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