What are Tokenized Real World Assets?
RWA protocols bring traditional financial assets onchain. This includes tokenized US Treasuries, private credit, and other income-generating assets that were previously inaccessible to DeFi users.
How RWA Works
Asset Tokenization: Real-world assets are wrapped into tokens Yield Distribution: Interest or dividends flow to token holders Compliance: Many RWAs require KYC/AML verification Redemption: Tokens can typically be redeemed for underlying valueTop RWA Products
- Midas Products: Institutional-grade RWA yields
- USDY (Ondo): Tokenized Treasury yields
- USDM (Mountain): Treasury-backed yield stablecoin
- sDAI (MakerDAO): DAI Savings Rate exposure
Yield Sources
- US Treasuries: 4-5% from government bonds
- Private Credit: 8-15% from loans to businesses
- Real Estate: Income from property investments
Risks to Consider
- Counterparty Risk: Depends on issuer/custodian integrity
- Regulatory Risk: Laws around tokenized securities evolving
- Redemption Risk: May have delays or restrictions
- Smart Contract Risk: Token wrapper vulnerabilities
Getting Started
- Complete KYC if required
- Purchase RWA tokens via protocol or DEX
- Hold to earn yield
- Redeem or sell when desired