Traditional financial assets (bonds, credit, real estate) tokenized and brought onchain.
RWA stands for Real-World Assets — traditional financial instruments (Treasuries, private credit, invoices, real estate) that are tokenized and represented onchain. Tokenized-Treasury stablecoins are the largest RWA category by TVL. RWA-backed stablecoins are attractive because they combine onchain composability with the yield and safety profile of TradFi instruments, but they inherit the regulatory and settlement complexity of TradFi.