How a Modern RWA Platform Should Be Structured (and Why That Matters)

For RWA-backed security tokens to succeed long-term and gain broad trust, a platform should ideally include:

1. Legal Vehicle / SPV — A legal entity owning the real-world assets, such that token holders (or the token issuer) have enforceable rights over the underlying value.

2. Custody & Audit Mechanism — Trusted custodians or trustees for physical assets; regular independent audits and transparent reporting.

3. Smart Contract + Compliance Infrastructure — On-chain tokenization, transfer mechanics, income or yield distribution, redemption rights — governed by compliant smart contracts and aligned with securities laws.

4. Secondary Market / Liquidity Mechanism — Either via regulated exchanges, primary/secondary offerings, or redemption mechanisms — critical for investor confidence.

5. Clear Token Holder Rights & Documentation — Transparency around what owning a token means: fractional ownership, yield rights, governance, redemption, etc.

6. Risk Disclosure & Investor Education — As this is still a nascent market, clear explanation of risks (market, regulatory, custody, liquidity) is essential.

If implemented rigorously, such a platform can provide many of the benefits associated with RWAs, while mitigating structural risks that have plagued early or naive “crypto-asset” projects.