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RWA Tokens

RWA Tokens represent fractional ownership of physical luxury assets stored in secure custody. Each token is fully fungible and backed by authenticated, insured assets.

How It Works​

Tokenization Process​

  1. Submit Asset - Send your luxury asset to our custody partner
  2. Authentication - Professional verification and documentation
  3. Mint Tokens - Receive 100 fungible tokens representing your asset
  4. Trade Fractions - Sell some or all tokens on the spot market
Physical Asset ($150k) → 100 Tokens @ $1,500 each

Token Properties​

Fungibility

  • All tokens of the same model are interchangeable
  • No need to track specific serial numbers for trading
  • Simplified liquidity and price discovery

Backing

  • Each token represents 1/100th ownership of a physical asset
  • Assets stored with insured custody partners
  • Regular audits and proof of reserves

Call Option

  • Original owners can retrieve their specific asset
  • Must maintain ≥10-30% token holdings
  • Requires buying back full token amount (100 tokens)
  • Premium based on time, price divergence, and liquidity

Supported Asset Categories​

The platform tokenizes various categories of high-value physical assets:

Luxury Vehicles​

  • Vintage and classic collector cars
  • Limited production exotic vehicles
  • Historic racing automobiles
  • Token amounts: 100-1,000 per vehicle based on valuation

Luxury Goods​

  • Rare and collectible items
  • Limited edition pieces
  • Vintage collectibles
  • Token amounts: Variable based on valuation

Fine Art & Collectibles​

  • Contemporary and classic art pieces
  • Rare collectibles and memorabilia
  • Investment-grade jewelry and gemstones
  • Token amounts: Variable based on valuation

Real Estate​

  • Luxury property fractionalization
  • High-value commercial real estate
  • Vacation properties and resorts
  • Token amounts: 100-10,000 per property

Each asset class maintains professional custody, authentication, and insurance standards appropriate to the category.

Token Standards​

ERC-20 Compliance​

All RWA tokens follow the ERC-20 standard:

  • Fully compatible with DeFi protocols
  • Can be used as collateral
  • Transferable on any ERC-20 compatible wallet

Metadata​

Each token collection includes:

  • Asset model and brand
  • Total supply (number of assets * 100)
  • Custody partner information
  • Authentication certificates
  • Insurance details

Pricing Mechanism​

Professional Market Making​

  • Dedicated market maker provides fair pricing
  • Prices based on real-world dealer markets
  • Challenge mechanism for disputes
  • Regular price updates

Price Discovery​

Prices are determined by:

  1. Off-chain dealer quotes (primary)
  2. On-chain spot market (secondary)
  3. Perp market signals (sentiment)

Custody & Security​

Custody Partners​

  • Professional custody facilities for luxury assets
  • Fully insured against theft, damage, loss
  • Regular audits and reporting
  • Secure vault facilities

Retrieval Process​

Original owners can retrieve their specific asset:

  1. Verify token holdings (≥10-30% threshold)
  2. Purchase remaining tokens to reach 100
  3. Pay retrieval premium
  4. Initiate withdrawal process
  5. Receive physical asset

Retrieval Premium Formula:

premium = baseRate + timeFactor + priceDivergence + liquidityFactor

Use Cases​

For Collectors​

  • Fractional Ownership: Own part of a rare luxury asset you couldn't afford entirely
  • Diversification: Spread $50k across multiple assets instead of one
  • Liquidity: Sell fractions anytime without dealer negotiations

For Investors​

  • Alternative Asset Class: Luxury goods with low correlation to stocks
  • Appreciation: Benefit from luxury asset market growth
  • Yield Generation: Stake tokens in vaults for additional returns

For Traders​

  • Price Speculation: Trade on luxury asset price movements
  • Arbitrage: Exploit price differences between markets
  • Leverage: Use as collateral for perp trading

Fees​

ActionFeeNotes
TokenizationLess than 1%One-time custody fee
Spot Trading0.3%Standard AMM trading fee
Token TransferGas onlyStandard ERC-20 transfer
RetrievalPremiumBased on market conditions

Risks​

Market Risk​

  • Token prices fluctuate with luxury asset market
  • No guaranteed returns
  • Illiquidity during market stress

Custody Risk​

  • Reliance on trusted custody partners
  • Insurance coverage limits
  • Physical asset damage/loss

Smart Contract Risk​

  • Code vulnerabilities
  • Protocol exploits
  • See Security for details

Next Steps​