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QUESTION

GS

Medium

Economy

Prelims 2026

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 24x7 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:

Select an option to attempt

Explanation

Statement 1 is Correct: Real-World Asset (RWA) Tokenization is the process of converting the ownership rights of physical or traditional financial assets (such as real estate, gold, commodities, or bonds) into digital tokens on a distributed ledger or blockchain. Each token represents a proportional share or claim on the underlying asset.

Statement 2 is Correct: Unlike traditional financial markets and real estate registries that have fixed operating hours, geographic limitations, and settlement delays, blockchain-based tokenized assets can be traded globally, 24 hours a day, 7 days a week, with near-instant settlement. Additionally, tokenization allows high-value, traditionally illiquid assets to be divided into smaller, affordable fractions. This lowers the barrier to entry, enabling retail investors and underserved populations to participate in wealth-building markets, thereby directly promoting financial inclusion.

Statement 3 is Correct: In the Indian context, RWA tokenization democratizes access to high-growth, capital-intensive sectors (like commercial real estate, agricultural land, and infrastructure projects). Regulatory bodies like the IFSCA (in GIFT City) have already begun approving tokenization platforms under regulatory sandboxes to unlock these previously inaccessible investment opportunities for everyday Indian retail investors.

Therefore, all three statements are correct, making the correct option A.

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