Problem
Research questions and friction points this paper is trying to address.
Real-World Asset Tokenization
Blockchain
Taxonomy
Financial Infrastructure
On-chain Representation
A Taxonomy of Real-World Asset Tokenization for Blockchain-Based Financial Infrastructure
🤖 AI Summary
Existing tokenization systems for real-world assets (RWAs) suffer from fragmented descriptions across legal, custodial, and technical dimensions, hindering meaningful comparison. This work proposes the first systematic taxonomy integrating legal, economic, and technical perspectives, structured around five core components: governance, asset structuring, token properties, distributed ledger implementation, and economic mechanisms. Applying an iterative taxonomic methodology, the study conducts a comparative analysis of 20 prominent RWA projects across diverse asset classes and implementation models. The findings reveal a dominant hybrid architecture that relies on off-chain legal safeguards coordinated with on-chain functionalities. Furthermore, the analysis identifies critical structural gaps and documentation deficiencies in key areas such as voting rights design, dispute resolution mechanisms, and token redemption or burn protocols.
📝 Abstract
Real-world asset (RWA) tokenization has emerged as a prominent application of blockchain technology, enabling off-chain financial and non-financial assets to be represented through blockchain-based instruments. However, deployed RWA systems remain difficult to compare because legal claims, custody arrangements, token mechanics, verification processes, and on-chain integrations are often described separately. This paper develops a systems-level taxonomy of RWA tokenization to classify how off-chain assets are legally, economically, and technically represented on-chain. Following an iterative taxonomy-development method, we organize twenty-three dimensions into five components: governance, asset structure, token properties, distributed ledger technology, and economy. We apply the taxonomy to twenty major RWA systems selected by market capitalization and compare their design choices across asset classes and implementation models. The classification shows that current RWA tokenization is predominantly implemented through hybrid architectures: blockchain tokens support representation, transfer control, redemption workflows, pricing, and composability, while core legal guarantees remain anchored in off-chain legal wrappers, custodial arrangements, compliance processes, and verification mechanisms. The analysis also reveals recurring documentation gaps concerning voting rights, dispute forums, burn mechanics, supply constraints, and reserve verification. Overall, the taxonomy provides a structured basis for comparing RWA systems, identifying design patterns and limitations, and supporting future research on blockchain-based financial infrastructure.
Innovation
Methods, ideas, or system contributions that make the work stand out.
RWA tokenization
blockchain taxonomy
hybrid architecture
on-chain representation
financial infrastructure
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