I made this post for those who are not sure what the RWA is meant to be.
Idea is mine (I know what CFD is), text genetated.
Tokenized stocks that Leostrategy (and similar projects such as Trust Wallet) present as RWA (Real‑World Asset) are often synthetic products. In practice they function like CFDs (Contracts for Difference)—the user gets exposure to the price movement of the underlying stock but does not actually own the security itself or the rights associated with ownership (e.g., dividends, voting rights).
An example is the tokenized version of Apple (often called AAPL‑on) listed in Trust Wallet—it is a digital representation of the stock that lets you trade the price of the share without holding the actual share.
If the token is not backed by a real‑world deposit of the shares (i.e., no third party physically holds the stocks), it is not considered a security‑token (a true financial instrument) but rather a derivative similar to a CFD.
What This Means for Naming
RWA is a marketing term that emphasizes a “real” underlying asset, but it does not automatically imply ownership rights.
CFD precisely describes the nature of the product when it only provides the price difference and does not guarantee ownership of the underlying share.
Therefore, if Leostrategy’s tokens are not backed by actual, physically held shares, calling them CFDs is technically more accurate. If the project could clearly demonstrate that each token unit is backed by a specific number of shares stored in a regulated custodian, then it would be more akin to a security‑token, and the term RWA would be justified.
Summary
In today’s ecosystem of tokenized stocks (including Leostrategy’s offering), most tokens behave like CFDs.
Using the term RWA can be misleading unless it is accompanied by a clear legal framework and genuine backing of the underlying assets.
Posted Using INLEO
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