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UPSC CSE 2026 · PYQ · Blockchain / Tokenization · medium

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.

  1. A.1, 2 and 3✓ Correct
  2. B.2 and 3 only
  3. C.1 and 2 only
  4. D.1 and 3 only

Explanation

All three statements about Real-World Assets (RWA) Tokenization are correct. Statement 1 correctly defines tokenization as the process of converting rights to a real-world asset (like real estate, art, commodities) into digital tokens on a blockchain. Statement 2 is correct because blockchain-based tokenized assets can be traded 24×7 unlike traditional markets that have limited hours, and fractional ownership through tokenization promotes financial inclusion by lowering investment thresholds. Statement 3 is correct as tokenization democratizes access to previously inaccessible high-growth investment opportunities (such as private equity, real estate, fine art) for retail individuals in India through fractional ownership.
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