What Is a Tokenized Real-World Asset?

A tokenized real-world asset is a blockchain token linked to something that already exists off-chain: a gemstone, a quantity of metal, a building, an invoice, a fund unit. The token is not the asset. It is a record of a claim on that asset.

Two pieces have to be true at the same time:

  • The off-chain asset exists, is identified and is controlled by a custodian or legal structure you can name.
  • The on-chain token is issued under documents that say who owns what if the custodian, the issuer or the chain fails.

Why gemstones are a type of RWA

A ruby in a Vilnius vault is a real-world asset. A token that names that ruby β€” weight, report number, custody status β€” is a tokenized RWA. Read what tokenized gemstones are and what RWA tokenization is.

What to check

  • Who holds the physical asset, and under which contract.
  • Whether an independent party has seen the asset recently (proof of reserves).
  • How redemption works, and who pays shipping, tax and cutting fees.
  • Which courts and regulators apply. GemReserve is operated by UAB GemVault Capital in Vilnius, Lithuania.

This page is educational, not an offer of any token.