Tokenisation of real-world assets: Blurring Lines

For centuries, real-world assets and financial market representations were clearly distinguished. Deeds represented land. Certificates represented equity. A receipt proved ownership, even debt instruments such as bonds had coupons that were clipped once paid. Finance has historically relied on trusted brokers to evaluate, transmit, and enforce claims to physical assets. Today, that clarity is fading as we face a myriad of intermediaries clearing houses, custodians, administrators, lawyers and auditors all checking that transactions happen and who owes what. No wonder Delivery V Payment seems so elusive as all these various parties need to balance their books and signoff before funds are released and securities transferred.

Real World Assets (RWAs) such as real estate, stocks, bonds, art, and even agricultural produce are being digitally mirrored and in some cases, completely subsumed by programmable tokens on decentralised networks thanks to blockchain and Web3.0 technologies. Tokenisa…