Real-World Asset (RWA) Tokenization
Question
Which of the following statements about Real-World Assets (RWA) Tokenization are correct?
Select the answer using the code given below:
Options
1, 2 and 3
2 and 3 only
1 and 2 only
1 and 3 only
Explanation
All three statements are correct. Real-World Asset (RWA) tokenization uses blockchain ledgers to convert ownership rights of physical assets (such as commercial real estate, art, or commodities) into fractional digital tokens (1). This technology enables 24/7 fractional trading over digital platforms, lowering entry barriers to improve market liquidity and expand financial inclusion (2). Furthermore, fractional tokenization allows individual retail investors in India to diversify into high-growth institutional asset classes that previously required large capital outlays (3).
Question details
Year
2026
Paper
GS Paper 1
Question
Q56
Subject
Science & Technology
Sub-topic
Computing, AI & IT
Type
Statement-based
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
SEBI / Financial Technology (FinTech) Framework Updates
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