Editorial focus · RWA / DeFi
RWA — tokenised external assets
A familiar asset gets a crypto wrapper. Issuer terms determine what the holder owns.
RWA: the asset and the holder's rights
RWA means real-world assets represented by tokens: for example, physical gold, fund shares or claims whose value follows a security. The token connects a blockchain balance to a particular asset and legal structure. Its issuer determines the holder's rights and the process for exchanging the token for money or an asset.
- Full name
- Real-world assets (RWA)
- Examples
- PAXG: gold; BENJI: fund share; NVDAon: a note linked to NVIDIA shares
- Who performs redemption
- The issuer or fund through its product-specific process
Build the current meta
Rights to an asset or exposure to its price
Access to an external asset
Issuer and trading venue
Redemptions, depth and tracking difference
Investors and collateral users
NVDAon: how Ondo links a token to NVIDIA
NVDAon is issued by Ondo Global Markets (BVI) Limited. The amount payable under this instrument tracks NVIDIA shares and includes reinvested dividends.
- Backing
- NVIDIA shares and cash in transit; the securities are held through regulated custodial broker-dealers.
- Secured claim
- Ankura Trust Company protects tokenholders’ claims on the collateral and can turn it into cash in issuer default events specified in the documents.
- Dividends
- NVIDIA’s payments to shareholders are reinvested in the shares after applicable withholding tax and reflected in the token’s value.
- Exit price
- The quote includes fees and any difference from the underlying share’s execution price retained by Ondo; participants pay network fees separately.
NVDAon can be bought or sold on a platform that supports it, including on Ethereum. Yieldo’s catalog lets you compare it with other NVIDIA tokens. A holder has a monetary claim against the issuer under the offering terms. Voting and other NVIDIA shareholder rights belong to owners of the shares themselves.
For direct redemption, a holder returns tokens to the issuer and receives dollar stablecoins at its quoted price: tokens whose value is linked to the US dollar. Ondo checks identity, jurisdiction and the investor status required there: for example, the EEA and UK require professional or qualified status. People located or resident in the United States or Russia are excluded from acquisition and redemption; the issuer also excludes U.S. persons outside the United States. Selling to another participant is a separate market transaction, subject to the platform’s rules and Ondo’s restrictions on acquiring the token.
Example sources checked:
RWA — tokenised external assets
Who gets paid
The token buyer, product customer and fee recipient may be different people. The diagram shows what each pays for and receives under the project’s rules.
- 01Payer
Investor or collateral user
- 02Action
Acquires an external-asset wrapper
- 03Payment or fee
Purchase price; fees and asset income separately
- 04Recipient
Seller, issuer and intermediaries under the terms
- 05What the holder receives
A claim or exposure defined in the issuer's documents
Money in the market
Asset-token buyers, market makers and people creating or redeeming the tokens.
Money from use
Underlying asset income, if any and passed through; issuer fees separately.
Who can earn while the token falls
Issuers and intermediaries may collect fees while the underlying asset declines.
What kinds of tokens are grouped under RWA?
A token can represent a physical asset. Each PAX Gold (PAXG) represents one fine troy ounce of allocated gold held in custody by Paxos. Smaller holdings represent a fraction of that gold.
A token can record a fund share. One BENJI represents one share of Franklin OnChain U.S. Government Money Fund (FOBXX). The fund holds government securities, cash and repurchase agreements; the investor owns a fund share.
A token can also be a debt instrument linked to a security's value. Ondo stock tokens such as NVDAon are structured notes issued by Ondo Global Markets (BVI) Limited. The existing NVDAon example on this page explains the claim, collateral and redemption.
How do ownership and redemption work for BENJI?
The fund's transfer agent keeps the official ownership record and approves the wallets that may hold or transfer BENJI. The token records a fund share, while the portfolio securities belong to the fund.
Redemption requests go through the Benji app or Institutional Web Portal. The fund processes them during business hours on business days and sends proceeds to the investor's bank account within seven days of a request received in proper form. For recently purchased shares, the fund may delay proceeds until the purchase's electronic funds transfer clears, which can take ten calendar days. Transfers between approved wallets follow a separate process.
Mechanism profile
- What was tokenized
- A legal claim to, or price exposure to, an external asset. Different token structures grant different rights.
- The promise
- Access to a familiar asset and the ability to use it in crypto.
- The proposed new buyer
- Investors seeking asset exposure, collateral users and traders on blockchain networks.
- How to check demand
- Holder rights, redemptions and user growth, separated from changes in asset prices.
- What worked
- Access and financial integration where the issuer and infrastructure functioned as intended.
- Where value becomes misleading
- A token was treated as a share, advertised volume as outside demand, and transfer restrictions were overlooked.
- Inherited mechanism
- Pairs with stock tokens, collateral and payments in tokenised assets.
Related tools and ecosystems
Inherited from earlier cycles
Sources
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