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. Select the answer using the code given below :
- (a) 1, 2 and 3 ✓ UPSC's answer
- (b) 2 and 3 only
- (c) 1 and 2 only
- (d) 1 and 3 only
Why the answer is (a)
• Tokenisation converts ownership rights in real-world assets — property, bonds, gold, art, invoices — into digital tokens recorded on a blockchain that can be held and traded in fractions; statement 1 is correct.
• Because blockchains run continuously without market hours or intermediaries, tokenised assets can be accessed and traded 24×7, lowering entry thresholds for small investors and so promoting financial inclusion; statement 2 is correct.
• Fractional ownership lets individuals in India put small sums into assets that were once reserved for large or institutional investors, such as commercial real estate or private credit; statement 3 is correct.
• Regulators such as SEBI and IFSCA at GIFT City are framing rules for such tokens, with pilots in progress.
• Hence 1, 2 and 3, option (a).
Why the other options are wrong
- (b) 2 and 3 only
- Statement 1, the basic definition of tokenisation, is also correct.
- (c) 1 and 2 only
- Statement 3 on access to high-growth opportunities is also correct.
- (d) 1 and 3 only
- Statement 2 on 24x7 access and inclusion is also correct.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2026, held on 24 May 2026. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.