RWAs: new institutional ‘trust’ layer to boost tokenized ESG investment

RWAs may bring billions in climate investments onchain by offering a new blockchain-based “trust” layer for institutional investors.

Tokenized assets are emerging as a blockchain-based trust layer for institutional investors targeting sustainable market opportunities, signaling a potential influx of capital onto blockchain rails.

Real-world asset (RWA) tokenization refers to financial and tangible assets minted on a permanent blockchain ledger, offering benefits such as fractional ownership, wider investor access and 24/7 liquidity.

According to Corey Billington, co-founder and CEO of tokenization infrastructure firm Blubird, tokenized RWAs offer a tamper-proof trust system that is absent in traditional finance and climate finance.

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