Tokenized Stocks have been all the rage recently, and serves as a standout narrative amidst the current market-moving geopolitical factors. 🧵

What are RWAs and Tokenized Stocks — and why do they matter now? Real-World Assets (RWAs) are off-chain assets like fiat, stocks, bonds, real estate, or commodities — assets whose value comes from legal or real-world ownership rather than native blockchain mechanisms. Tokenized Stocks are a specific type of #RWA: equities from traditional markets represented as tokens on-chain. Each token reflects the ownership or economic rights to a share of a publicly listed company.

So, why now? ✅ Regulatory clarity — Frameworks like Switzerland’s DLT Act and the EU’s MiFID II make tokenized securities legally viable. ✅ Product-market fit — Global users can now trade equities 24/7, without traditional market restrictions. ✅ Massive market size — The ~$330 trillion RWA market is 100x the size of crypto. Bringing these assets on-chain helps solve DeFi’s lack of sustainable yield and may redirect liquidity from highly speculative tokens.

How does it work? 1️⃣ A licensed issuer acquires real stocks on traditional markets 2️⃣ These are held in segregated custody accounts 3️⃣ Tokens are minted 1:1 on-chain to represent the stocks 4️⃣ Users can redeem tokens, and the issuer sells the stocks and returns fiat — while burning the tokens RWA and tokenized stocks aren’t just a trend. They’re building the foundation for the next evolution of DeFi — regulated, yield-bearing, and globally accessible.