What Is Real World Assets (RWA)?
Traditional assets like stocks, bonds, or real estate that are tokenized and brought on-chain.
Definition
Real World Assets (RWAs) are off-chain assets represented as tokens on a blockchain. This includes tokenized stocks, bonds, real estate, commodities, and other traditional financial instruments. RWAs bridge traditional finance (TradFi) with decentralized finance (DeFi).
How It Works
RWAs are typically created through two methods: 1) Tokenization - where a custodian holds the actual asset and issues tokens representing ownership (like xStocks), or 2) Synthetics - where tokens track asset prices using oracles without holding the underlying (like Continuum).
In Continuum
Continuum creates synthetic RWA exposure - you get price tracking of stocks, commodities, and forex without the regulatory complexity of tokenized assets. No KYC, no geographic restrictions, and full DeFi composability. Use your synthetic RWA exposure as collateral on lending protocols.
Related Terms
A token that tracks the price of another asset without requiring ownership of the underlying.
Assets deposited to back or secure a financial position.
A service that brings off-chain data (like prices) onto the blockchain.
The ability of DeFi protocols and tokens to work together like building blocks.
More DeFi Terms
Get early access to Continuum and trade synthetic assets 24/7 on Solana.
Get Early Access