Tokenization (RWA)

Tokenization is the process of representing an asset as a blockchain token, enabling programmable ownership, transfer, and settlement. In the RWA (Real World Assets) context, tokenization often refers to putting traditional assets–Treasury bills, money market fund shares, credit instruments, commodities, or real estate claims–on-chain. Tokenization can reduce settlement friction, enable 24/7 transferability, and automate compliance using smart contract controls such as whitelisting and transfer restrictions. Ethereum is frequently central to tokenization narratives because it offers mature smart contract standards, deep stablecoin liquidity for settlement, and strong integration with custody and analytics providers. For mainstream adoption, tokenization is a key bridge between web3 and TradFi: it modernizes market infrastructure without requiring users to adopt speculative behavior. Tokenization also intensifies cross-chain comparisons: institutions weigh security, decentralization, and ecosystem support more than marginal fee differences when issuing regulated assets. Long-tail SEO terms include “tokenized treasuries,” “RWA tokenization platform,” and “on-chain money market fund,” reflecting growing institutional curiosity about blockchain settlement rails. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary

Related in VEI

• Glossary: MPC Custody (Multi-Party Computation)
• Glossary: Tokenized Treasuries
• Blog: CME Ether Futures and the Institutional Derivatives Era: How TradFi Learned to Hedge ETH (2021-2023)
• Blog: Visa, USDC, and Stablecoin Settlement: Ethereum’s Mainstream Payments Narrative (2021-2025)
• Directory: Optimism Foundation / OP Labs