Use Cases

RWA) tokenization unlocks a new frontier in financial innovation. By leveraging blockchain technology, we can transform how we own, manage, and trade a vast array of assets. Let's delve into some of the most prominent use cases, presented in a consistent structure for easy comparison:

Use Case	Description	Benefits	Limitations (if any)
Stablecoins (e.g., USDT, USDC)	Fiat-backed tokens pegged to traditional currencies.	Maintain value within the blockchain ecosystem. Facilitate frictionless international transfers.	-
Tokenized Art (NFTs)	Digital certificates representing ownership of digital and physical assets.	Verify authenticity and ownership. Unlock new value propositions (copyrights, commercial use licenses). Bridge physical and digital realms (e.g., downloadable content linked to NFTs).	Critics may dismiss certain NFTs as "overhyped."
Tokenized Securities	Issuing and trading equities, bonds, and stocks as digital tokens.	Streamline processes (issuance, listing, record-keeping, auditing). Enable 24/7 global access on decentralized exchanges (DEXes). Broaden participation for investors in developing countries.	-
Tokenized Physical Objects (e.g., Luxury Goods)	Representing ownership of physical assets with digital tokens.	Facilitate asset management and potential collateralization.	Requires centralized storage of the physical asset. Current primary use case: obtaining loans via DeFi services.
Tokenized Documents (e.g., Government IDs)	Secure digital documents leveraging blockchain technology.	Enhance security and prevent forgery. Improve efficiency and automate processes (e.g., KYC). Ensure privacy through off-chain verification.	-
Real Estate Tokenization	Fractional ownership and easier transferability of real estate investments.	Increased liquidity and accessibility. Faster transactions and reduced costs.	-
Bond and Treasury Tokenization	Streamlined issuance, management, and automated interest payments.	Increased efficiency and reduced costs. Broader market participation and enhanced liquidity.	-
Carbon Credit Tokenization	Enhanced transparency, tracking, and verification within the carbon credit market.	Improved environmental impact measurement and monitoring. Increased accessibility for smaller companies.	-
Intellectual Property and Collectibles	Fractional ownership and new avenues for monetization of high-value assets.	Increased liquidity and accessibility for investors. New revenue streams for creators and owners.	-
Machinery and Equipment	Tokenization as a novel approach to raising capital and managing large-scale industrial equipment.	Easier access to capital for companies. Passive income opportunities for investors.	-

Completely New Assets Made Possible by Tokenization

The combination of blockchain technology, smart contracts, and programmability opens the door to creating entirely new classes of exclusive assets:

• programmable insurance contracts that utilize oracles to automatically prove an event happened and pay money;

• futures based on Bitcoin’s hashrate that deliver BTC mined in the specified period;

• programmable bonds for decentralized algorithmic stablecoins;

• certificates for prioritized on-chain transactions on busy blockchains.

Virtually anything of value or that can be owned is ripe for tokenization and on-chain trading.