LEGAL AND ECONOMIC DIMENSIONS OF REAL-WORLD ASSET (RWA) TOKENIZATION: GOLD AS TOKENIZED ASSET

Abstract

With rapid technological advancements, the business and financial sectors are undergoing significant transformation, and blockchain has emerged as a key driver in disrupting traditional financial ecosystems while promoting greater financial inclusion, particularly in countries like Indonesia that are in the midst of transitioning toward a digital economy.  One of blockchain’s core capabilities is asset tokenization, which has attracted growing interest from financial institutions seeking new investment mechanisms.  This study uses a qualitative approach and descriptive analysis through a literature review to examine the potential and challenges of tokenization, using the tokenization of real-world assets (RWA), specifically gold, as an illustrative example.  The findings reveal that current development of tokenization is promising, as it enhances liquidity, operational efficiency, and global accessibility, while blockchain, as its core technology, provides greater transparency and enables fractional ownership.  However, several issues remain as the tokenization of real-world assets gains momentum, including legal uncertainty, as governments and institutions adapt to the pace of new financial innovations while seeking to protect consumers and promote innovation.  The study recommends adopting market-driven regulatory frameworks and encouraging joint efforts with international institutions to compare and evaluate market practices across different jurisdictions.