Real-World Assets (RWAs): Bringing Securities, Gold, and More Onchain

This content is for general information and education only and does not constitute investment advice, a financial promotion, or a recommendation to buy, sell, hold, or otherwise deal in any cryptoasset or to use any specific third‑party service. Cryptoassets are high‑risk, can be very volatile, and you could lose all the money you invest. You will not have access to UK compensation or ombudsman schemes in relation to cryptoassets. If you are unsure whether any activity is suitable for you, you should seek independent financial advice. Take 2 mins to learn more.

What are real-world assets?

Real-world assets (RWAs) are assets that exist outside crypto, such as company shares, gold, or government bonds, that are tokenized on a blockchain. A token is a digital receipt for the asset. You hold it in your wallet like any other crypto.

In this article

• How tokenized securities and gold work
• Tokenized stocks in Tangem
• What are yield-bearing stablecoins?
• Risks and availability
   

How tokenized securities and gold work

1. A company, the issuer, holds the real asset. For example, real shares or gold are kept in a reserve with a regulated custodian.
    
2. The issuer creates the same amount in tokens. Each token is backed by the asset in reserve.
    
3. The tokens live on a blockchain. Holders can send and swap them like any other token.
    
4. Tokens can be redeemed. When tokens are taken out of circulation, the issuer releases the matching asset from its reserve.

The token is a real blockchain token. The issuer holds the underlying asset, so holders rely on the issuer to keep the reserve.
 

Tokenized stocks in Tangem

The Tangem app lists xStocks, tokenized securities issued by a third party. They work as follows:

• Price exposure only. An xStock follows the price of a real share or ETF. It is a tracker certificate. It gives no ownership of the share and no shareholder rights, such as voting.
   
• Backed 1:1. For every token, the issuer holds the matching share with a regulated custodian in a separate account. If the issuer fails, an independent security agent can take control of these assets and pay out the token holders. Holders still rely on the issuer, custodian, and agent to perform.
   
• Dividends are added to your token amount. You do not get a cash payment. Dividends are reinvested in additional shares of the same stock after applicable taxes. Stock splits adjust your balance accordingly.
   
• Issuing and redeeming follow market hours. The issuer creates and redeems tokens on US business days. The tokens themselves can be traded on-chain at any time.

Real assets tab

This tab lists tokenized real-world assets, such as stocks, gold, and bonds.

Each row shows the asset name, ticker, price, 24-hour change, and market cap. Blue means the price went up. Red means the price went down.

Sort the list by market cap. Change the period with the 24h filter.

Filter by category

Tap the All filter. The Category sheet opens. 

The sheet lists these types:

• xStocks: Tokenized tracker certificates that follow the price of real company shares.
   
• ETFs: Tokenized funds that track a basket of assets, such as an index, in a single token.
   
• Commodities: Tokens that represent physical goods, such as gold, and follow their market price.
   
• Bonds: Tokens that represent debt instruments, such as government treasury bills.
   
• Yield Stablecoins: Tokens pegged to a stable currency, such as the US dollar. Their issuers invest reserves and may pass returns to holders. Returns vary and carry no guarantee.
   

What are yield-bearing stablecoins?

A regular stablecoin aims to maintain a value of $1. A yield-bearing stablecoin has the same aim, but its issuer also invests the reserves, for example, in short-term government bonds or through lending.

Profits may reach holders as a growing balance or a gradually rising token price. Yield varies over time and is not guaranteed.

Risks include loss of the $1 peg, issuer or counterparty failure, and losses on the underlying investments. You can lose some or all of your money.
 

Risks and availability

• Price risk. Tokenized assets can fall in value. You can lose all the money you invest.
   
• Issuer risk. You rely on the issuer and its custodian to hold the reserve and honor redemptions.
   
• Market hours affect prices. RWA tokens are regular tokens, but the issuer links them to the traditional market by creating and redeeming them at the current market price. 
  
  On weekends and holidays, the main market is closed, so the issuer cannot do this. Onchain liquidity gets thin, and rates can be worse.
   
• Availability varies by country. xStocks are not offered in the following countries: 
  Afghanistan, Belarus, Canada, Central African Republic, Congo (Democratic Republic of the), Cuba, Ethiopia, Haiti, Iran, Iraq, Korea (Democratic People’s Republic of), Lebanon, Libya, Mali, Mozambique, Myanmar, Nicaragua, Nigeria, Philippines, Russian Federation, Somalia, South Sudan, Sudan, Syrian Arab Republic, Ukraine, United Kingdom, United States of America, Venezuela, Yemen and Zimbabwe.