REAL WORLD ASSETS

A Brand-new Way Of Revolutionizing Real Assets Legally

Unlock the Future of Finance with Real World Asset Tokenization: Powered by Regulatory clarity. Designed by Finjuris.

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At Finjuris, we believe that tokenization and innovation go hand in hand. To avoid any hurdles in your process of amalgamating tokenization and innovation, Finjuris ensures to safeguard your venture legally.

Real-world asset (RWA) tokenization is one of the most significant market prospects in the blockchain sector, with a potential market size of hundreds of billions of dollars. In theory, everything of value may be tokenized and placed on blockchain.

Real World Assets- Explained

Tokenized real-world assets (RWAs) are blockchain-based digital tokens that reflect tangible and traditional financial assets, including cash, commodities, stocks, bonds, credit, artwork, and intellectual property. The tokenization of RWAs represents a significant shift in how these assets can be accessed, exchanged, and managed, opening up a plethora of new opportunities for both blockchain-powered financial services and a wide range of non-financial use cases based on cryptography and decentralized consensus.

Real World Assets Can Include

1
Real Estate
  • Residential buildings (apartments, villas)
  • Commercial properties (offices, malls)
  • Rental income properties
  • Fractional ownership of vacation homes
2
Commodities
  • Gold, silver, and other precious metals
  • Oil and natural gas
  • Agricultural commodities (like coffee, wheat)
3
Art and Collectibles
  • Fine art and paintings
  • Rare watches or luxury goods
  • Vintage cars
  • Collectible wine and whiskey
4
Financial Instruments
  • Bonds (corporate, municipal)
  • Treasury bills
  • Revenue-sharing agreements
  • Private equity stakes or shares in unlisted companies
5
Carbon Credits and Environmental Assets
  • Certified carbon offsets
  • Renewable energy certificates (RECs)
  • ESG-linked projects
6
Intellectual Property (IP)
  • Music royalties
  • Movie or streaming rights
  • Patents and trademarks (used for licensing income)

Overview of Tokenization Process for Real World Assets

Asset Identification

Select the real-world asset to tokenize (e.g., real estate, artwork, commodities, bonds).

Legal Structuring

Create a legal framework (often via an SPV or trust) to ensure the asset can be tokenized and ownership can be legally represented.

Asset Valuation

Conduct due diligence and independent appraisal to determine the asset’s fair market value.

Smart Contract Development

Code the rules of ownership, transferability, compliance, and profit distribution into blockchain-based smart contracts.

Token Issuance

Mint the tokens on a blockchain platform, representing fractional ownership or rights linked to the real-world asset.

KYC/AML Compliance

Perform Know Your Customer (KYC) and Anti-Money Laundering (AML) checks on potential investors.

Token Distribution

Distribute the tokens via a primary offering (e.g., STO platform, token sale, or private placement).

Secondary Market Trading

List the tokens on regulated exchanges or peer-to-peer platforms to enable liquidity and investor exit options.

Ongoing Compliance & Reporting

Ensure regular financial reporting, audits, and legal compliance updates are maintained for token holders and regulators.

Are All RWA Tokens Securities?

In brief, not all RWAs are securities.
In the RWA tokenization scenario, assessing whether a tokenized RWA is recognized as security is dependent on the asset being tokenized, the token's structure, and the regulatory definition in play. Different countries use different criteria to determine what constitutes "security". Not all RWAs are securities.
The most common form is to place the RWA under the control of a legal entity, which is then tokenized and issued via a pooling of money from many investors, giving investors indirect interests in the underlying RWA. These tokens should be treated as securities.
Another reason for this structure's popularity is because most RWA ownership is subject to regulatory registration, which presents issues for RWA token fractionalized ownership and transferability. For example, land registries often limit the number of parties eligible to possess a piece of property, and any ownership changes must be reported.
The Dubai Land Department, on the other hand, has collaborated with Dubai Virtual Assets Regulatory Authority (VARA) launched the pilot phase of the ‘Real Estate Tokenisation,’ one of the initiatives under the umbrella of the ‘REES Real Estate Innovation Initiative.

How You Can Tokenize Real World Assets in Dubai?

Understand the Regulatory Landscape: VARA

In Dubai, the Virtual Assets Regulatory Authority (VARA) oversees all virtual asset activity.

If your tokenized RWA incorporates blockchain-based issuance, trading, or investing, it is called a Virtual Asset Service and requires the necessary VARA license. Activities VARA Covers:

  • Token issuance
  • Under custody or care
  • Exchange or Broker-Dealer
  • Transfer Services
  • Advisory or analytics on tokens

Select the Appropriate Legal Structure

Before tokenization, the asset must be lawfully constructed to allow for fractional ownership. This is commonly done via:

The tokens represent shares or economic rights in the SPV (Special Purpose Vehicle), which holds the real-world asset.

Trust or Foundation: For more complicated or global ownership structures.

On-chain legal wrappers enable smart contract compliance and enforcement.

Get the Necessary Licenses

Depending on your company strategy, you may require one or more VARA licenses to operate lawfully in Dubai.

For RWA Tokenization, the following are most relevant:
  • Token Issuance: If you're minting and distributing tokens.
  • Broker-Dealer: If aiding buying and selling.
  • Custody: When storing tokens or managing wallets
  • Advisory Services: If you assist others tokenize or invest in RWAs.

Perform Legal Due Diligence on the Asset

Before Tokenization:
  • Verify asset ownership and legal title.
  • Conduct valuations and third-party appraisals.
  • Ensure the asset is clear of liens and encumbrances.

Confirm that the asset type is eligible under UAE property, commodity, and financial regulations.

For example:
  • Real estate tokenization must comply with the Dubai Land Department (DLD) guidelines.
  • Gold or commodities must comply with the DMCC (Dubai Multi Commodities Centre) guidelines.

Create Smart Contract and Token Infrastructure

Once legally structured:
  • Collaborate with a blockchain engineer to build smart contracts for your tokens.
  • Define rights as ownership, income participation, control, and redemption.
  • Choose the appropriate blockchain (Ethereum, Polygon, R3 Corda, etc.)
  • Implement compliance standards such as whitelisting, transfer limitations, and KYC enforcement.
  • Collaborate with legal and compliance departments to ensure that smart contracts accurately represent real-world legal rights.

Create or Integrate KYC/AML and Compliance

VARA requires:
  • Investor onboarding will entail comprehensive KYC/AML screening.
  • Continuous surveillance for suspicious activities (Travel Rule Ready)
  • Wallet tracking and limitations according on investment categorization (retail, qualified, and institutional).

Launch the Offering (STO/Token Sale)

Your distribution model might be:
  • Private placement: To qualified or high-net-worth investors.
  • Public Token Sale: With Full Regulatory Disclosures and Prospectus
  • Dual model: Begin private, then expand to the larger market.

Enable Secondary Market Trading

Once the tokens are distributed:
  • You can apply to list them on a regulated exchange or secondary platform (authorized by VARA or ADGM).
  • Or enable P2P transfers within your platform, subject to compliance checks.

Ongoing Reporting and Governance

VARA expects:
  • Annual audits
  • Real-time risk evaluations.
  • Regular updates for token holders
  • Maintenance of governance requirements, particularly for voting tokens.
Use legal and technical tools to:
  • Provide dashboards.
  • Automate compliance alerts.
  • Implement communal governance (where applicable)
HAVE MORE QUERIES? CONTACT OUR TEAM OF TECHNO-LEGAL PROFESSIONALS TODAY

Other Notable Jurisdictions For Real World Asset Tokenization

Switzerland

Tokenized assets are recognized as securities by the Swiss Financial Market Supervisory Authority (FINMA). The country enables for complete digital asset lifecycle management, including custody, trading, and fundraising through Security Token Offerings (STOs).

Key Strengths

  • Legal Recognition of Digital Ownership
  • Stable regulatory environment.
  • A robust private banking and wealth management environment.

Singapore

Singapore has one of the most sophisticated regulatory frameworks for digital assets. The Monetary Authority of Singapore (MAS) promotes tokenized securities and has conducted pilot programs for RWA tokenization under Project Guardian. It specializes in tokenized bonds, structured products, and fund units.

Key Strengths

  • Regulatory Sandbox
  • Institutional involvement.
  • Global Investor Access

Germany

Germany's BaFin recognizes tokenized securities and has provided clear guidance on prospectus exemptions and custody restrictions. The Electronic Securities Act (eWpG) makes it easier to issue digital bonds without physical certificates.

Key Strengths

  • Legal clarification about e-securities
  • Institutional Banking Participation
  • EU-wide passporting possibilities

Luxembourg

Luxembourg is an ideal location for asset-backed tokenization of money and financial products. The CSSF (Commission de Surveillance du Secteur Financier) authorizes tokenized shares and bonds inside current fund structures.

Key Strengths

  • Recognized under EU financial legislation
  • Strong funding infrastructure
  • Access for EU investors

The United States

Despite the complicated and fragmented legal framework, the United States continues to host some of the most high-profile RWA tokenization initiatives, particularly in real estate and private equity. SEC and CFTC laws apply, and licenses such as ATS (Alternative Trading System) are commonly required.

Key Strengths

  • Access to Capital
  • Technological Innovation
  • Mature investor markets.

How Can Finjuris Assist You?

Finjuris provides comprehensive legal and regulatory help for organizations seeking to tokenize real-world assets in Dubai and other notable jurisdictions. Whether you're tokenizing real estate, commodities, art, or financial instruments, our diverse team will help you stay compliant, investor-ready, and secure.

Here's how we can help you on your tokenization journey

Legal Structure and SPV Formation

We assist you in establishing the appropriate legal entity (SPV, trust, or foundation) to store your asset and issue tokens representing ownership or economic rights—all while being fully regulatory compliant.

VARA Licensing Advisory

As Dubai's regulatory landscape develops, obtaining the appropriate crypto license from VARA is crucial. We assist with:

  • Preparing your initial disclosure questionnaire
  • Navigating MVP to Full Market Licensing
  • Ensure that your activity is accurately classified (exchange, custody, broker, etc.).
Regulatory and Jurisdictional Mapping

We examine applicable regulations from many countries to guarantee that your token structure complies with UAE, FATF, and worldwide legal standards—particularly if you're seeking global investors.

Smart Contract Legal Review

Our tech-legal professionals examine or assist with drafting smart contracts to ensure:

  • Compliance is included into the token logic.
  • Rights like as redemption, dividends, and voting are legally enforceable.
  • Tokens do not unintentionally breach securities or consumer laws.
KYC/AML and Risk Frameworks

We build and publish AML regulations that are specific to your platform's risk profile and investor class (Retail, Qualified, Institutional). We also provide guidance on Travel Rule compliance and suspicious transaction monitoring.

STO Documentation and Investor Disclosures

From whitepapers and token purchase agreements to private placement memoranda, we prepare all legal documentation required for your offering, in accordance with VARA and international standards.

Why Finjuris?

With extensive knowledge in blockchain, Web3 law, and UAE regulatory frameworks, we don't simply understand tokenization; we shape it. Our clientele includes startups, established platforms, real estate developers, and institutional investors interested in digital money.

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