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Economy question from UPSC CSE-Prelims, 2026

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 x 7 access, promoting financial inclusion.
3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.

Last updated Jun 17, 2026
Correct Answer: Option A — 1, 2 and 3
Here is a quick breakdown of why all three statements are correct:

Statement 1 is correct: At its core, RWA tokenization is the process of converting ownership rights of a physical or traditional financial asset (like real estate, gold, or bonds) into a digital token on a blockchain.

Statement 2 is correct: Because blockchains operate continuously without traditional banking hours, tokenized assets can be traded 24/7. This global accessibility, combined with the ability to fractionally own expensive assets, drastically lowers the barrier to entry, promoting financial inclusion.

Statement 3 is correct: Tokenization allows Indian investors to fractionally invest in previously inaccessible, high-value, or cross-border growth assets (such as premium international real estate or global private equity) with relatively small amounts of capital.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
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UPSC CSE 2026 Prelims

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Exam UPSC CSE
Stage Prelims
Year 2026
Subject Economy
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