A Beginner’s Guide to Token Standards and RWA Tokenization

Introduction

Token standards provide the backbone of asset creation and governance in DeFi.
Understanding how these assets are created, identified, and governed is essential for anyone looking to build or invest in DeFi projects. For a deeper dive into the fundamentals of token standards, see Token Standards Explained: Foundations for DeFi Developers.

Token basics

Token standards are the “lingua franca” of the DeFi ecosystem.
For an in‑depth look at how token standards operate across wallets, exchanges, and protocols, read Navigating Token Standards in DeFi: Key Concepts and Practices.

ERC‑20
ERC‑20 defines a set of functions such as transfer, approve, and balanceOf. The most widely used specifications for fungible tokens are covered in Token Standards Explained: Foundations for DeFi Developers.

ERC‑721
ERC‑721 offers the uniqueness required for non‑fungible tokens. A comprehensive overview of its use in DeFi is available in DeFi Token Standards Demystified.

ERC‑1155
ERC‑1155 lets you represent both fungible shares and ancillary rights within a single contract. For more on the versatility of ERC‑1155 in real‑world applications, see Mastering DeFi Token Standards and Real‑World Asset Tokenization.

Choosing a standard

When deciding which standard fits your business model, consider both the technical features and the regulatory context. The interplay between token standards and RWA tokenization is explored in Building a Foundation: Token Standards and RWA Tokenization.

Real‑world asset tokenization fundamentals

Real‑world asset tokenization extends on‑chain logic to physical and legal assets, unlocking liquidity, fractional ownership, and global access. For core principles and techniques behind RWA tokenization, read Real World Asset Tokenization: Core Principles and Techniques.

Legal considerations

Tokenizing RWAs often crosses into securities territory. Key regulatory concerns include securities law compliance, KYC/AML, data protection, and cross‑border issues. For a focused discussion on securities compliance within DeFi, see Mastering DeFi Token Standards and Real‑World Asset Tokenization.

Technical Implementation

Smart contract patterns such as role‑based minting, pausing, and dividend mechanisms are best implemented using proven libraries. For patterns and best practices, refer to Mastering DeFi Token Standards and Real‑World Asset Tokenization.

Use Cases

Tokenized real estate, infrastructure bonds, commodities, art, and debt instruments all benefit from robust token standards. For a broader view of how DeFi token protocols intersect with real‑world assets, check out Demystifying DeFi Token Protocols and Real World Asset Tokenization.

The rest of the guide remains unchanged, ensuring a smooth flow of information while providing natural internal links to deepen your understanding of token standards and RWA tokenization.