CMS
Nov 23, 2025
What Investors Should Evaluate — Due Diligence for RWA Token Investments
If you're evaluating or marketing an RWA-based security token, here are key aspects to check and communicate — to build credibility and minimize risk.
Due Diligence for RWA Token Investments
If you're evaluating or marketing an RWA-based security token, here are key aspects to check and communicate — to build credibility and minimize risk.
What to Evaluate | Why It Matters |
|---|---|
Legal Structure & Compliance (SPV, investor documentation, regulatory status) | Ensures that on-chain tokens are backed by enforceable claims to real-world assets. |
Custody & Asset Management Practices (who holds the real asset, audit frequency) | Underlying assets must be securely stored and verifiable; failure may destroy token value. |
Transparent Valuation & Reporting | Investors need to know how underlying assets are valued and updated — especially in illiquid markets. |
Liquidity & Market Structure (secondary market, redemption mechanics) | A token’s tradability depends on real demand, clear exit mechanisms, and transparent markets. |
Tokenomics & Rights (income distribution, governance, legal rights) | Investors need clarity on what owning a token actually means: share of profits, voting rights, redemption rights, etc. |
Risk Disclosures (regulatory, counterparty, market, custody, smart-contract risks) | As with any investment, transparency about risks builds trust and aligns investor expectations. |
By proactively addressing these factors, a platform can turn what is “innovative but risky” into “structured and credible.”
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