Real-World Asset (RWA) Tokenization¶

XDC Network provides the infrastructure for tokenizing real-world assets, enabling fractional ownership, increased liquidity, and 24/7 trading of traditionally illiquid assets.

What is RWA Tokenization?¶

RWA tokenization is the process of converting ownership rights of physical or financial assets into digital tokens on the blockchain. This enables:

Fractional Ownership: Divide expensive assets into affordable shares
Increased Liquidity: Trade assets 24/7 on secondary markets
Global Access: Enable worldwide investment opportunities
Reduced Costs: Eliminate intermediaries and paperwork
Transparency: Immutable ownership records on-chain

Supported Asset Classes¶

Real Estate

Commercial properties, residential buildings, REITs, and land parcels.
Commodities

Precious metals (gold, silver), agricultural products, and energy resources.
Financial Instruments

Bonds, treasury bills, private equity, and debt instruments.
Alternative Assets

Art, collectibles, intellectual property, and carbon credits.

XDC Network Advantages for RWA¶

Feature	Benefit
2-second finality	Instant settlement for token transfers
Near-zero fees	Cost-effective for high-volume trading
ISO 20022	Compliance with banking standards
XRC20/XRC721	Flexible token standards
Private subnets	Regulatory compliance options

Technical Architecture¶

flowchart TD
    A[Real-World Asset] --> B[Legal Structure]
    B --> C[SPV/Trust]
    C --> D[Smart Contract]
    D --> E[Token Minting]
    E --> F[XRC20/XRC721 Tokens]
    F --> G[Secondary Market]

    H[Oracle] --> D
    I[Custodian] --> C
    J[Auditor] --> C

Token Standards¶

XRC20 for Fungible Assets¶

Best for assets where each token is identical (e.g., gold-backed tokens, fractional real estate):

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.19;

import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
import "@openzeppelin/contracts/access/Ownable.sol";

contract GoldBackedToken is ERC20, Ownable {
    uint256 public goldReserve; // in grams
    uint256 public constant GRAMS_PER_TOKEN = 1; // 1 token = 1 gram of gold

    address public custodian;

    event GoldDeposited(uint256 grams, string proofHash);
    event GoldWithdrawn(uint256 grams, address recipient);

    constructor(address _custodian) ERC20("XDC Gold Token", "XGOLD") {
        custodian = _custodian;
    }

    function depositGold(uint256 grams, string calldata proofHash) external onlyOwner {
        goldReserve += grams;
        _mint(custodian, grams * 10**decimals() / GRAMS_PER_TOKEN);
        emit GoldDeposited(grams, proofHash);
    }

    function redeemForGold(uint256 amount) external {
        require(balanceOf(msg.sender) >= amount, "Insufficient balance");
        uint256 grams = amount * GRAMS_PER_TOKEN / 10**decimals();

        _burn(msg.sender, amount);
        goldReserve -= grams;
        emit GoldWithdrawn(grams, msg.sender);
    }

    function getGoldBacking() external view returns (uint256) {
        return goldReserve;
    }
}

XRC721 for Unique Assets¶

Best for unique assets requiring individual identification (e.g., property deeds, art):

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.19;

import "@openzeppelin/contracts/token/ERC721/ERC721.sol";
import "@openzeppelin/contracts/token/ERC721/extensions/ERC721URIStorage.sol";

contract RealEstateToken is ERC721URIStorage {
    uint256 private _tokenIds;

    struct Property {
        string propertyAddress;
        uint256 squareMeters;
        uint256 valuation;
        string legalDocHash;
        bool isVerified;
    }

    mapping(uint256 => Property) public properties;

    event PropertyTokenized(uint256 tokenId, string propertyAddress, uint256 valuation);

    constructor() ERC721("XDC Real Estate", "XPROP") {}

    function tokenizeProperty(
        address owner,
        string memory propertyAddress,
        uint256 squareMeters,
        uint256 valuation,
        string memory legalDocHash,
        string memory tokenURI
    ) external returns (uint256) {
        _tokenIds++;
        uint256 newTokenId = _tokenIds;

        _mint(owner, newTokenId);
        _setTokenURI(newTokenId, tokenURI);

        properties[newTokenId] = Property({
            propertyAddress: propertyAddress,
            squareMeters: squareMeters,
            valuation: valuation,
            legalDocHash: legalDocHash,
            isVerified: false
        });

        emit PropertyTokenized(newTokenId, propertyAddress, valuation);
        return newTokenId;
    }

    function verifyProperty(uint256 tokenId) external {
        // Add verification logic (e.g., oracle, admin)
        properties[tokenId].isVerified = true;
    }
}

Live RWA Projects on XDC¶

Comtech Gold (CGO)¶

Gold-backed tokens with physical gold stored in secure vaults. Each CGO token represents 1 gram of 999.9 fine gold.

Website: comtechgold.com
Audit: Fully audited reserves
Custody: Dubai-based secure vaults

Trade Finance Assets¶

TradeFinex enables tokenization of trade receivables, invoices, and letters of credit.

Platform: tradefinex.org
Assets: $100M+ tokenized

Compliance Framework¶

Regulatory Considerations¶

Securities Laws: Ensure compliance with local securities regulations
KYC/AML: Implement identity verification
Custody: Partner with licensed custodians
Audit: Regular third-party audits
Legal Structure: Proper SPV/trust setup

XDC Compliance Features¶

Private Subnets: Permissioned access for regulated assets
Identity Layer: KYC integration capabilities
Audit Trail: Immutable transaction history
Programmable Compliance: Smart contract-enforced rules

Getting Started¶

Step 1: Asset Selection¶

Choose suitable assets for tokenization based on: - Liquidity needs - Regulatory environment - Market demand - Operational complexity

Step 2: Legal Structure¶

Work with legal advisors to: - Create appropriate SPV/trust structure - Draft token holder agreements - Ensure regulatory compliance

Step 3: Technical Implementation¶

Deploy smart contracts on XDC:

# Install dependencies
npm install xdc3 @openzeppelin/contracts

# Deploy to XDC testnet first
npx hardhat run scripts/deploy.js --network apothem

Step 4: Launch & Distribution¶

Conduct security audit
Deploy to mainnet
List on exchanges/DEXs
Market to investors