Which of the following statements about Real-World Assets (RWA) Tokenization are correct?
- 1.Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
- 2.Tokenization of real world assets offers 24 × 7 access, promoting financial inclusion.
- 3.Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below:
Answer & explanation
Answer: (a) 1, 2 and 3
Tokenisation represents rights in a real asset such as property, bonds or commodities as digital tokens on a distributed ledger. India’s IFSCA paper sees advantages such as fractional ownership, lower entry barriers, new avenues for diversification and 24/7 market operations, so the key treats all three statements as correct.
- ✓ 1. IFSCA’s consultation paper describes tokenization as using technologies such as distributed ledger technology (DLT) to issue or represent assets in digital forms known as tokens.
- ✓ 2. The paper points to demand for 24/7 market operations and to lower entry barriers, which is the basis for wider access.
- ✓ 3. The paper says tokenization can create an organised marketplace for real-world assets with fractionalisation and newer avenues for diversification, opening asset classes to more investors.
Remember · RWA tokenisation = putting rights in real assets on a ledger as tokens; benefits cited include fractional ownership, lower entry barriers and 24/7 markets.
Sources
- IFSCA: Consultation Paper on Regulatory Approach towards Tokenization of Real-World Assets (Feb 2025), definition ↗ “tokenization to refer to “a process that involves utilising new technologies, such as distributed ledger technology (DLT), to issue or represent assets in digital forms known as tokens” … Tokenization may be seen as a technological process, which can create an organized marketplace of real-world assets, potentially extending several advantages such as improving liquidity, reducing entry barriers (fractionalization), providing newer avenues for diversification etc. to investors.”
Question and answer: UPSC's provisional GS Paper I (2026, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·