UPSC Prelims 2026 · Question 56 of 96
UPSC Prelims 2026 question on Real World Asset Tokenization
- ExamUPSC CSE
- Year2026
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicSecurity Market in India
- DifficultyMedium
- TypeStatement
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 24x7 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:
Show answer
Answer: A. 1, 2 and 3
Verdict
All three statements are correct, so the answer is Option (a).
Analysis
Real-World Asset (RWA) tokenization involves transforming ownership rights of physical or conventional financial assets (such as real estate, commodities, or bonds) into digital tokens on a blockchain network. Blockchain-driven tokenization provides continuous 24x7 accessibility and trading, unlike traditional financial markets that operate within fixed hours. This helps improve financial inclusion by reducing entry barriers for investors. Tokenization also supports fractional ownership, enabling individuals in India to invest smaller amounts in expensive assets such as commercial properties or fine art.
Statement by statement
Statement 1 is correct: Tokenization is the process of converting real-world assets into digital tokens using blockchain technology. This accurately describes the concept of Real-World Asset tokenization.
Statement 2 is correct: Tokenization of real-world assets offers 24x7 access, thereby promoting financial inclusion. Since blockchain systems operate continuously without fixed market timings, and fractional ownership lowers investment thresholds, accessibility is enhanced.
Statement 3 is correct: Tokenization of real-world assets will provide individuals in India with access to high-growth investment opportunities. By enabling fractional ownership, tokenization expands access to asset categories that were traditionally available only to a limited group of investors.