Interest in Real World Asset (RWA) tokenization is growing, thanks to the ongoing discovery of new tokenization use cases in countless industries. Tokenization is revolutionizing access to traditionally high-value assets from real-estate to commodities, making them more accessible, liquid, and appealing to a huge range of investors.
By converting physical assets, like fine art, into tokens on a blockchain, tokenization gives everyone and anyone an opportunity to diversify their investment portfolio like never before. Instead of having to shell out millions to buy a luxury property, or invest in infrastructure, investors can purchase fractional shares of any asset they like.
It’s the start of a revolution in the decentralized finance (DeFi) space that could transform the investment landscape forever. In fact, Boston Consulting already say the market for tokenized assets could reach a value of $16 trillion by 2030.
So, where do the biggest opportunities lie as we shift away from traditional systems into the world of digital assets? Here are just ten of the top real-world use cases for tokenization worth exploring.
Use Case 1: Real Estate Tokenization
The tokenization of real estate assets has emerged as a popular opportunity in the last couple of years. For decades, investing in real estate has only really been an option for wealthy investors, thanks to the high levels of initial capital required, and the time-consuming nature of most transactional processes.
However, thanks to real estate tokenization, and “fractionalization”, building developers can appeal to a wider number of investors. For instance, in 2018, a Manhattan Real Estate project allowed hundreds of investors to purchase digital shares in a luxury property complex.
The use of fractional shares meant that more investors (with less capital) could take part in the project, and the building developers didn’t have to invest as much time, effort, and money into finding a single person to purchase the building.
New platforms have begun to emerge since then, increasing access to fractional real estate investment. For instance, the RealT platform now allows users to purchase shares in US properties for as little as $50. Anyone can buy a share, regardless of where they live, enabling instant, convenient cross-border investments. The potential here is incredible, particularly when you consider the value of the global real estate market (which hit $4.3 trillion in 2024).
Aside from simply democratizing access to real estate investment, tokenization also makes the real estate space more “liquid” allowing users to quickly buy, sell and trade shares without lengthy waiting times and complex paperwork.
Use Case 2: Fine Art and Collectibles
The global art market is massive. Experts predict it will be worth more than $889 billion by 2032 – but like real estate, the “fine art” space struggles with limited accessibility. Most people can’t afford to simply buy an original Monet or Van Gogh piece outright.
Tokenized assets and fractionalization address this issue. For instance, one famous tokenization example in the fine art world is the “Andy Warhol 14 Small Electric Chairs” collection. Fractional shares of the collection were sold online, and tracked through the blockchain, allowing more people to claim a stake in an incredibly valuable asset.
Similar to in the real estate landscape, as the RWA use cases in the art world have evolved, platforms have emerged to make accessing these assets easier. For instance, the Maecenas platform allows users to invest in famous artworks, such as those by Banksy or Picasso, without needing millions of dollars.
Because the platform tracks the ownership of shares on the blockchain, investors benefit from a clear record of authenticity, and ownership. The blockchain helps to ensure investors can track ownership history, and benefit from a more transparent trading environment.
Beyond enabling the democratization of art investment, tokenization also creates new trading opportunities. For instance, users can trade “shares” in an art piece just as easily as they would buy and sell cryptocurrencies or NFTs. This increases the liquidity of fine art and collectables, enabling users to buy and sell assets quickly, based on current market value.
Use Case 3: Commodities Tokenization
The commodities market has long been popular among investors, particularly those looking to diversify their portfolios with assets that protect them against the impact of inflation. As an asset tokenization example, commodity tokenization gives investors new ways to invest in gold, oil, precious metals, and other products without having to actually own the physical asset.
Investors get a convenient way to trade, hedge, or hold commodities with unprecedented transparency and ease of access. After all, with the blockchain, it’s easy to track the ownership and movement of commodities at scale, simplifying the supply chain.
Platforms like Tradewind tokenize commodities such as gold and silver, allowing for fractional ownership and easy transferability on a global scale. These platforms can even make investing in commodities less expensive. When you’re investing in a digital asset, you don’t have to worry as much about physical storage infrastructure fees and insurance costs.
Plus, tokenized commodities can serve other RWA user cases too. For instance, tokens can be used as collateral in DeFi loans. This means users can leverage their commodity assets as securities, without selling them directly. With smart contracts, investors can verify the origin, authenticity, and ownership of these commodities instantly, adding trust to the transaction process.
Use Case 4: Trade Finance Tokenization
Trade finance serves as one of the most valuable blockchain tokenization use cases. The global “trade finance” market is currently expected to reach a value of $87.81 billion by 2031. However, investing in this landscape can be complex, thanks to a lengthy documentation process.
Trade finance tokenization users smart contracts to automate the traditionally cumbersome documentation process, reducing paperwork, costs, delays, and errors. Tokenizing receivables and invoices also gives companies faster access to working capital. It ensures smaller businesses and organizations can access rapid access to cross-border financing options without unnecessary complexity.
Smaller businesses can even take advantage of new financing options that wouldn’t have been available without tokenization. They can source investment and funding from global organizations, without being restricted by borders.
Just as with other asset tokenization use cases, the potential for trade finance tokenization is evolving with the introduction of new technologies and platforms. Platforms like Tradeteq, for instance, enable immediate tokenized trade finance, allowing millions of users to diversify their portfolio, and automate investment workflows.
Use Case 5: Carbon Credits
The ability to purchase carbon credit tokens online is an excellent example of tokenization at work in the green finance landscape. The carbon credit market has taken off as a way to support global sustainability efforts, and tokenization has added a layer of accountability and transparency that traditional markets lack.
By converting carbon credits into digital tokens, blockchain tokenization enables precise tracking of carbon offsets, promoting eco-friendly practices and incentivizing companies and individuals to reduce their carbon footprint.
As demand for sustainability grows worldwide, the carbon credit market is growing with it – expected to reach a value of over $1.6 trillion by 2028. Tokenization gives both companies and individuals a unique opportunity to get involved with eco-friendly projects, regardless of their location or background. It could pave the way for global participation in initiatives that help to protect the planet, eliminate greenhouse gasses, and preserve vital resources.
The Toucan Protocol is an excellent example of a solution designed to improve participation in green finance projects with tokenization. It converts carbon credits into unique tokens that can be integrated with any supported De-Fi platform. With the Toucan platform, investors can track the value of their carbon credits in real-time, and buy, trade, or sell tokens instantly.
Use Case 6: Intellectual Property (IP) Tokenization
Imagine owning a slice of the next blockbuster invention or viral hit. IP tokenization enables this, allowing creators to break high-value intellectual property into digital tokens. For instance, a creator could sell fractional shares in patents, trademarks, and copyrights.
This isn’t just a great way for big businesses to cash in on valuable IP. The tokenization use cases for intellectual property benefit various different groups. Tokenization allows investors, artists, and creators to fund their ideas quickly, while sharing profits with their community.
The IPwe platform is an excellent example of a solution enabling the rise of IP tokenization. This blockchain-powered patent platform allows enterprises and everyday users to understand, manage, sell, and buy IP assets. Since every sale and action is tracked on the blockchain, owners can avoid complex legal and financial webs, using smart contracts to automate royalty payments and earnings.
With IP tokenization, investors no longer need to spend millions on high-value patents, thanks to fractionalization. Anyone, from a business leader, to an everyday consumer, can purchase a share in the next “cutting-edge” creation. This new form of investment could be the next frontier for anyone looking to cash in on creativity and invention.
Use Case 7: Infrastructure Projects
The infrastructure market is huge – expected to reach a value of $5.9 trillion by 2028. Infrastructure assets form the backbone of modern society, giving us access to energy, transportation and communication systems. Traditionally, these assets have been funded by massive intuitional investments. However, thanks to new use cases for tokenization, this is beginning to change.
The tokenization of infrastructure projects is enabling individuals from all over the world to invest in urban transit systems, sustainable energy, and more. The New York City Real Estate Tokenization Project, for instance, is one excellent blockchain tokenization example in the infrastructure space.
This project allows individuals and institutions to purchase digital shares in New York infrastructure through the web. Platforms like SunContract, on the other hand, give people an option to buy and sell energy tokens on the web. This means anyone can buy tokens that help to contribute to a more sustainable energy landscape, without spending a fortune.
Aside from opening the door to a broader investment pool, the tokenization of infrastructure solutions can help to support more collaborative input into how these projects are developed. For instance, sellers could give token holders the ability to vote on important decisions about the future of certain projects, such as where new solar farms are built, or the type of technologies they use.
Platforms can even give the stakeholders of tokenized projects rewards for their contribution. For instance, a DePIN network could reward investors that share data on the energy landscape in their region, or share insights necessary for a project to continue.
Use Case 8: Debt Securities
In the debt securities landscape, asset tokenization use cases pave the way for a faster, more flexible alternative to traditional debt instruments and bonds. By digitizing assets, like asset-backed securities and bonds, tokenization can reduce settlement times and make the debt market more accessible and liquid. Tokenization can also allow for the creation of new securities on the blockchain.
For instance, investors could get involved with green bonds from environmentally friendly projects, expanding the range of diverse fixed-income projects in their portfolio. A great example of tokenization in the debt securities came from HSBC Orion, which made waves by launching a $760 million digital green bond on a private blockchain.
This bond was one of the largest digital bond deals at the time, showing how tokenization can help streamline debt management, automate interest payments, and offer faster liquidity. As the global debt security market accelerates towards a value of $2.8 trillion by 2032, tokenized debt could have a huge role to play in our future.
The use of tokenized assets and smart contracts could open the door to more flexible investment opportunities, allowing all kinds of investors to explore different types of products with unique interest rates, benefits, and opportunities.
Use Case 9: Natural Resources
Natural resource investment is one of the most unique tokenization use cases on this list. The natural resources contributed by the top five countries worldwide have a current value of around $214 trillion. Tokenizing assets like timber, water rights, and mineral deposits could allow investors to access a wide range of exotic investment opportunities in the years ahead.
With a few clicks on a platform, you could fund a responsible mining initiative, or get involved with a sustainable forestry project. Stobox is as platform exploring this new investment model, offering investors access to tokenized natural resources that support ethical sourcing, and sustainable projects.
The use of smart contracts for the blockchain-based tokens on the platform means that investors can reap the benefits of their investments automatically. The value of each digital token held on the platform is naturally tied to the chosen resource, and investors earn rewards as the asset increases in value. The great thing about this example of tokenization is it isn’t just unlocking access to new investment opportunities.
Natural resource tokenization is helping to develop projects that actually have a positive impact on the world, reducing waste or minimizing emissions. This means you gain an opportunity to diversify your portfolio, increase income, and make the world a better place.
Use Case 10: Agricultural Assets and Farmland
Like some of the other tokenization use cases and RWA use cases we’ve explored so far, agricultural asset and farmland tokenization is helping to transform the world we live in on a significant scale. The tokenization of agricultural assets, like livestock, farmland, and crop yields is democratizing access to agricultural investments allowing for fractional ownership in agriculture.
With blockchain technology, anyone can support the world’s farmers, without needing to own a farm or purchase huge amounts of land. Instead, they can simply invest in specific crops or initiatives, tackling issues like food security, and increasing the value of their portfolio at the same time.
Like other blockchain tokenization use cases, agricultural tokenization also helps smaller businesses and farm operators access capital faster. They can sell small shares of future crop yields to people from all over the world, getting the funding they need to invest in future growth quickly.
Twiga Foods in Kenya has already demonstrated the potential of this landscape, with a blockchain-based financing model which allows small farmers to sell digital tokens representing future crop yield, to access funding immediately. Elsewhere, in Latin America, Agrotoken is a platform that allows wheat, soy, and corn farmers to trade grains through the blockchain.
Companies can even use their tokens as collateral for loans on the Agrotoken platform, introducing yet another funding opportunities. The tokenization of natural crop projects, farmland property, and other resources could pave the way to faster agricultural innovation, enhanced crop diversification and more sustainable farming practices in the years ahead.
Transforming Investment Through RWA Tokenization
Right now, we’re only beginning to scratch the surface of countless tokenization use cases in the digital landscape. Blockchain tokenization use cases are evolving all the time, reimagining traditional sectors like fine art and real estate, as well as emerging landscapes like agriculture and green initiatives. Every asset and data tokenization example has something unique to offer.
These solutions not only make investment opportunities more accessible to the masses, but they also align with the ideals of transparency, financial inclusion, and sustainability emerging around the world. From making real estate globally accessible, to democratizing carbon credits and intellectual property, RWA use cases are redefining what it means to be an investor.
As tokenized asset markets grow, the boundaries between traditional assets and digital finance are blurring. The future of finance isn’t just about profits; it’s about inclusive prosperity, allowing everyday investors to take part in once-exclusive markets. Dive deeper into RWA tokenization projects, and you might just find yourself at the forefront of a financial revolution.
