Glossary
RWA (Real-World Asset)
An off-chain asset — such as a treasury bill or equity — represented on-chain as a token issued by a regulated entity.
RWA tokenization brings traditional assets on-chain as tokens issued by a regulated entity. Ondo Finance is an RWA issuer — the clearest large-scale example for equities: its Ondo Global Markets tokens are RWAs, each representing a US stock or ETF and tracking its total return, including dividends.
As with tokenized stocks, you hold the token and a claim on the underlying rather than the registered security, so issuer and custody risk apply.