Tokenized government debt and money market funds, private credit, real estate, commodities and collectibles: how each works, and the risk that matters most in each.
Government debt and money market funds
- Tokenized government debt and money market funds are among the largest on-chain real-world asset categories.
- Examples include Franklin Templeton's on-chain government money fund and BlackRock's BUIDL fund, launched on Ethereum in 2024.
- They are used for on-chain cash management and as collateral.
Private credit
- Loans are made off-chain and financed through tokens.
- The key risk is lending: underwriting, servicing and recovery, not the blockchain.
- Look at default history and who services the loans.
Real estate
- Usually tokenized as shares or debt of a company that owns the property.
- Land registries and property law stay local and off-chain.
- Rental income and costs must be reported like any property investment.
Commodities and gold
- Gold tokens are typically backed by metal held in a vault.
- Check the audits, the custodian and the redemption terms.
- A gold token is a claim on the vault operator, not the vault.
Collectibles and alternatives
- Cars, art and watches can be split into small tickets.
- Valuation, storage and insurance drive the economics.
- Markets are small, so exits usually come from selling the whole asset.
Key takeaways
- Tokenized funds and government debt lead; they solve a real cash-management need.
- In every category, the asset's own risk dominates the technology risk.
- For backed tokens, check the custodian and the redemption terms.
Sources
Educational content only, not legal, tax or investment advice. Based on EU and Swiss rules as of September 2026. Check the official texts before relying on anything here.