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Q56·GS Paper 1 · Prelims 2026

Real-World Asset (RWA) Tokenization

S&TComputing, AI & ITStatement-basedMediumCurrent-affairs-linked

Question

Which of the following statements about Real-World Assets (RWA) Tokenization are correct?

1Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
2Tokenization of real world assets offers 24x7 access, promoting financial inclusion.
3Tokenization 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:

Options

a

1, 2 and 3

Answer
b

2 and 3 only

c

1 and 2 only

d

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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