Glossary
Key terms and definitions used throughout the RWA research report. Click any term to see its full definition.
Core Concept
Tokenization
The process of issuing blockchain tokens that represent ownership in real-world assets. Tokenization enables traditional financial instruments (fiat currency, bonds, equities, real estate, commodities) to be represented and traded on-chain.
Real-World Assets (RWAs)
Traditional financial instruments (fiat currency, bonds, equities, real estate, commodities) represented on-chain as tokens. RWAs bridge traditional finance and decentralized finance.
Asset Type
Stablecoins
Tokenized fiat currencies (e.g. USDT, USDC) designed to maintain a stable value via reserves. Stablecoins serve as digital cash equivalents in crypto markets but typically yield 0% to holders.
Tokenized Funds
Shares of investment funds (e.g. money market or bond funds) issued as tokens. Examples include BlackRock's BUIDL, Franklin Templeton's BENJI, and Ondo Finance's OUSG.
On-Chain Treasuries
Tokenized short-term government debt or money-market instruments held by crypto treasuries. Often overlapping with tokenized fund shares, but specifically emphasizing U.S. Treasury exposure on-chain.
Product
BUIDL
BlackRock's tokenized money market fund, launched March 2024. With ~$2.5B AUM, BUIDL offers ~4% APY and is accepted as collateral on major exchanges like Binance.
BENJI
Franklin Templeton's OnChain U.S. Government Money Fund, launched April 2021. With ~$0.83B AUM and ~961 holders, BENJI is notable for being accessible to retail investors.
OUSG
Ondo Finance's Short-Term US Government Bond Fund, launched January 2023. With ~$0.82B AUM, OUSG is structured as a fund-of-funds investing in underlying money market funds managed by BlackRock, Fidelity, and others.
Organization
DAO Treasury
A decentralized autonomous organization's reserve fund, typically holding native tokens and stablecoins. DAO treasuries are exploring RWA allocations to generate yield and extend operational runway.
Regulation
GENIUS Act
Guiding and Establishing National Innovation in U.S. Stablecoins Act, passed in 2025. Creates federal oversight for stablecoin issuers and provides regulatory clarity for tokenized assets in the U.S.
Compliance
KYC
Know Your Customer - identity verification requirements for compliance. Most RWA products enforce KYC, meaning tokens are 'permissioned' and only whitelisted addresses can hold them.
Financial Term
NAV
Net Asset Value - the per-share value of a fund. For tokenized funds like OUSG, NAV can rebase upward to accumulate interest, while others like BUIDL maintain a stable $1 NAV.
Correlation
A statistical measure of how two assets move together. RWAs like T-bills and gold have low correlation (near 0) with crypto assets, providing diversification benefits.
Sharpe Ratio
A measure of risk-adjusted return. Adding RWAs to crypto portfolios can improve Sharpe ratio by reducing volatility while maintaining or increasing returns.
Runway
The length of time a DAO or fund can operate before depleting its treasury. RWA allocations can extend runway by generating yield income.