What Legal Framework Is Required to Ensure the Enforceability of a Tokenized RWA?

To ensure enforceability, a robust legal framework is required to bridge the gap between the on-chain token and the off-chain physical asset. This involves a legally binding agreement that explicitly links the unique token ID (ERC-721) to the legal ownership of the RWA in the real world.

This typically requires a special purpose vehicle (SPV) or trust to hold the RWA and issue the token. The framework must define the rights of the token holder, the rules for token transfer, and the mechanism for liquidation or foreclosure.