The key difference between RWAs and cryptocurrencies lies in what the token represents.

Tokenized RWAs represent defined rights or interests in an underlying real-world asset, such as a fund unit, a bond, or a commodity holding. Their value is supported by the underlying asset and the legal structure that defines investor rights. Because they confer financial rights or claims, they are often classified as security tokens and typically require regulated custody, legal documentation, and compliance with applicable securities frameworks.

Crypto-native tokens, such as ETH, SOL, or governance and utility tokens, exist purely on-chain and do not correspond to an off-chain financial instrument. Their value is generally driven by network activity, use cases, or market demand. Their regulatory treatment varies across jurisdictions and often differs from frameworks applied to tokenized securities.