Real-World Asset (RWA) tokenization bridges traditional finance (TradFi) with blockchain by converting physical and financial assets—like real estate, gold, bonds, or carbon credits—into digital tokens. These on-chain representations enable fractional ownership, 24/7 global trading, and automated yield distribution via smart contracts, unlocking liquidity for previously illiquid markets. Technically, RWA projects rely on smart contracts for ownership tracking, oracles like Chainlink for real-world data feeds and Proof-of-Reserve audits, and secure legal structures like SPVs (Special Purpose Vehicles) to link tokens to off-chain assets. Tokens can follow standards like ERC-20 for fungible shares (e.g., tokenized U.S. Treasuries) or ERC-721 for unique assets (e.g., a specific property). Protocols such as Ondo Finance, Centrifuge, and Maple Finance bring Treasury yields, private credit, and real estate income on-chain, while institutions like BlackRock issue tokenized funds on Ethereum. By introducing stable, real-economy yields into DeFi, RWAs reduce volatility and expand access to institutional-grade investments. This category represents the next evolution of DeFi, merging blockchain efficiency, transparency, and global accessibility with the trillions of dollars locked in traditional markets.