UPSC Previous Year Question | Prelims GS | 2026

Which of the following statements about Real-World Assets (RWA) Tokenization are correct? 1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology. 2. Tokenization of real world assets offers 24 × 7 access, promoting financial inclusion. 3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India. Select the answer using the code given below:

  1. 1, 2 and 3
  2. 2 and 3 only
  3. 1 and 2 only
  4. 1 and 3 only

Answer

Correct Answer

1, 2 and 3

Explanation

Real-World Asset tokenization involves representing ownership or economic rights in physical or traditional financial assets through digital tokens, generally using blockchain or distributed-ledger technology. Tokenized assets can potentially provide round-the-clock access and fractional ownership, thereby widening participation. They can also create access to investment opportunities that may otherwise have high entry barriers. Hence all three statements are correct.

Topics: blockchain, digital assets, economy, financial technology