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A Taxonomy of Real-World Asset Tokenization for Blockchain-Based Financial Infrastructure

Author

Listed:
  • Giorgio Vella
  • Luca Pennella
  • Mark C. Ballandies

Abstract

Real-world asset (RWA) tokenization has emerged as a prominent application of blockchain technology, enabling off-chain financial and non-financial assets to be represented through blockchain-based instruments. However, deployed RWA systems remain difficult to compare because legal claims, custody arrangements, token mechanics, verification processes, and on-chain integrations are often described separately. This paper develops a systems-level taxonomy of RWA tokenization to classify how off-chain assets are legally, economically, and technically represented on-chain. Following an iterative taxonomy-development method, we organize twenty-three dimensions into five components: governance, asset structure, token properties, distributed ledger technology, and economy. We apply the taxonomy to twenty major RWA systems selected by market capitalization and compare their design choices across asset classes and implementation models. The classification shows that current RWA tokenization is predominantly implemented through hybrid architectures: blockchain tokens support representation, transfer control, redemption workflows, pricing, and composability, while core legal guarantees remain anchored in off-chain legal wrappers, custodial arrangements, compliance processes, and verification mechanisms. The analysis also reveals recurring documentation gaps concerning voting rights, dispute forums, burn mechanics, supply constraints, and reserve verification. Overall, the taxonomy provides a structured basis for comparing RWA systems, identifying design patterns and limitations, and supporting future research on blockchain-based financial infrastructure.

Suggested Citation

  • Giorgio Vella & Luca Pennella & Mark C. Ballandies, 2026. "A Taxonomy of Real-World Asset Tokenization for Blockchain-Based Financial Infrastructure," Papers 2606.08534, arXiv.org, revised Jun 2026.
    • Handle: RePEc:arx:papers:2606.08534
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    References listed on IDEAS

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    1. Jan Schwiderowski & Asger Balle Pedersen & Roman Beck, 2024. "Crypto Tokens and Token Systems," Information Systems Frontiers, Springer, vol. 26(1), pages 319-332, February.
    2. Junliang Luo & Xihan Xiong & Zonglun Li & Hong Kang & Xue Liu & William J Knottenbelt & Katrin Tinn, 2026. "SoK of RWA Tokenization: A Systematization of Concepts, Architectures, and Legal Interoperability," Papers 2604.06608, arXiv.org, revised Apr 2026.
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