Real-world assets (RWAs) are quietly gaining traction through tokenization, with domains, intellectual property (IP), and carbon credits leading the charge in practical applications. While the crypto spotlight remains on Bitcoin ETFs and meme coins, the real innovation lies in how tokenization is transforming traditionally illiquid or rigid assets into programmable, tradable, and functional digital assets.
D3 Global’s recent partnership to tokenize 22 million domains marks a significant milestone in this evolution. By leveraging the Doma Protocol in collaboration with InterNetX, the project enables cross-chain compatibility across networks like Solana and Base, introducing functionalities such as fractional ownership, secondary market trading, and domain-backed lending [1]. The $360 billion domain industry, previously stuck in an all-or-nothing ownership model, is now unlocking new financial opportunities for asset holders. For example, the small Caribbean island of Anguilla, which owns the “.ai” top-level domain, now derives 20-25% of its government revenue from domain registration fees—a fiscal windfall driven by the rise of AI-related domain names since late 2022 [1].
Similarly, IP is becoming increasingly tradable through blockchain-based registries. Platforms like Oasys and IPwe offer immutable provenance records, reducing fraud in IP licensing and enabling automated, verifiable agreements. Musicians are already tokenizing song rights, allowing fans to invest in royalty streams and share in future earnings [1]. This model has broader applications in any creative industry where intellectual property generates recurring revenue, provided legal systems align with blockchain-based ownership frameworks.
Carbon credits are also seeing disruption through tokenization. The Toucan Protocol has addressed long-standing issues of liquidity and transparency in voluntary carbon markets by converting carbon offsets into tokenized assets. These tokens enable instant settlement and transparent trading, streamlining the process for corporations to purchase and report on verified offsets. The carbon pool grew 400% in 2024 as institutional demand for environmental, social, and governance (ESG) compliance increased [1]. However, the success of this model hinges on integration with satellite monitoring and field verification systems to prevent greenwashing and maintain regulatory credibility.
Unlike speculative crypto assets, these “unsexy” RWAs are solving real-world problems in established markets. Domains, IP, and carbon credits are not just financial tools but foundational infrastructure with clear utility. Tokenization adds new financial capabilities without disrupting existing functions. A domain still operates the same way, an IP right still generates revenue, and a carbon credit still represents a verifiable environmental offset—regardless of whether it’s traded via a traditional broker or a DeFi protocol [1].
Despite their advantages, these assets face challenges in adoption. Enterprises must overcome trust barriers, particularly in sectors like DNS infrastructure where reliability is critical. Traditional registrars may also resist disintermediation efforts that threaten their control over renewal fees and domain management. Additionally, legal uncertainty remains a hurdle for IP tokenization, as courts continue to handle ownership disputes and infringement claims in traditional ways [1].
The next phase of tokenization is moving beyond financial speculation and into operational enhancement. Rather than creating new asset classes, these RWAs are augmenting existing systems with greater liquidity, transparency, and efficiency. As financial RWAs mature, the industry is shifting focus to utility-driven applications that solve real-world problems. Domains, IP rights, and carbon credits represent the forefront of this pragmatic blockchain shift, where tokenization becomes invisible yet invaluable [1].
Source: [1] The ‘Unsexy’ RWAs: How Domains And IP Are Quietly Disrupting Ownership (https://www.forbes.com/sites/digital-assets/2025/08/13/the-unsexy-rwas-how-domains-and-ip-are-quietly-disrupting-ownership/)
