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Resources

Free tools, guides, and references to help you navigate the world of on-chain RWA.

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Glossary of RWA Terms

Key definitions for the on-chain RWA ecosystem:

  • RWA — Real World Asset; any physical or traditional financial asset tokenised on a blockchain
  • Tokenisation — The process of issuing digital tokens representing ownership of an underlying asset
  • DeFi — Decentralised Finance; blockchain-based financial protocols without intermediaries
  • Security Token — A token that meets the legal definition of a security
  • Stablecoin — A cryptocurrency designed to maintain a stable value relative to an asset (typically USD)
  • TVL — Total Value Locked; the total value of assets deposited in a DeFi protocol
  • LP — Liquidity Provider; someone who supplies assets to a liquidity pool
  • KYC — Know Your Customer; identity verification required by regulated platforms
  • AML — Anti-Money Laundering; regulatory requirements for financial services
  • DSS — Digital Securities Sandbox; UK regulatory sandbox for digital securities
  • CGT — Capital Gains Tax; tax on profits from selling assets
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Frequently Asked Questions

Is RWA tokenisation legal in the UK?

Yes, RWA tokenisation is legal in the UK. However, security tokens and certain tokenised assets may require FCA authorisation or fall under existing financial regulations. Always verify the regulatory status of any platform or product.

Do I need to pay tax on tokenised assets?

Yes. HMRC considers tokenised assets as chargeable assets for Capital Gains Tax. Income from staking, lending, or rental distributions may be subject to Income Tax. Consult a qualified tax advisor.

What's the minimum investment for RWA tokens?

Minimums vary by platform — from $1 (Backed Finance) to $50 (RealT) for retail products, up to $5M+ for institutional products like BlackRock BUIDL.

How do I buy RWA tokens?

Most RWA tokens can be purchased through the platform's website or through DeFi protocols. You'll typically need a wallet (e.g., MetaMask) and may need to complete KYC verification.

Are RWA tokens safe?

RWA tokens carry risks including platform risk, smart contract risk, liquidity risk, and underlying asset risk. They are not covered by the FSCS (Financial Services Compensation Scheme).

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Useful Links

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UK Regulatory Framework

Overview of key UK regulations relevant to RWA tokenisation:

  • Financial Services and Markets Act 2000 (FSMA) — Primary legislation governing financial services in the UK, including securities
  • Money Laundering Regulations 2017 — AML requirements for cryptoasset businesses
  • Digital Securities Sandbox (DSS) — Regulatory sandbox for digital securities, extended to 2028
  • Consumer Duty (2023) — FCA rules requiring fair value and clear communication
  • HMRC Cryptoassets Manual — Tax guidance for cryptoassets including tokenised assets

This is a summary only. Consult official sources for complete regulatory information.