How to Invest in RWA Tokenisation

The Reality Check

Investing in RWA tokenisation from the UK is possible but requires navigating both crypto and traditional finance. Many tokenised products are designed for US or institutional investors, with minimums ranging from $5,000 (Ondo OUSG) to $250,000 (BlackRock BUIDL). However, several accessible routes exist for UK investors, and the landscape is improving rapidly.

Step 1: Set Up a Crypto Wallet

You'll need a self-custody wallet to hold RWA tokens. The two main options:

• MetaMask — the most widely supported wallet; browser extension and mobile app. Works with Ethereum, Polygon, Arbitrum and other EVM chains
• Ledger (hardware wallet) — stores your private keys offline on a physical device. Significantly more secure than a software wallet. Recommended for any investment over £1,000

Critical: Write down your seed phrase on paper and store it securely. Never enter it on any website. If someone gets your seed phrase, your assets are gone with no recourse.

Step 2: Fund Your Wallet with Stablecoins

Most RWA tokens are purchased with USDC or USDT. To get stablecoins from the UK:

• Crypto exchange → wallet: Buy USDC on Coinbase, Kraken or Binance, then withdraw to your self-custody wallet. UK bank transfers (Faster Payments) are supported by Coinbase and Kraken
• Direct on-ramp: MetaMask's built-in "Buy" feature supports UK debit card purchases via MoonPay or Transak (higher fees)
• Peer-to-peer: Less recommended for beginners; involves finding a counterparty directly

Transfer a small amount first to test the address before sending larger amounts.

Step 3: Choose Your RWA Investment

Beginner-Friendly Options

• Franklin Templeton FOBXX — available via the Benji app; minimum $20. Tokenised US Government Money Fund. One of the few options accessible to non-US retail investors (check current eligibility)
• PAX Gold (PAXG) — buy on DEXs like Uniswap or CEXs like Coinbase. Each token = 1 oz of gold. No minimum beyond the token price (~$2,400)
• Tether Gold (XAUT) — similar to PAXG; available on Kraken and other exchanges

Intermediate Options

• Ondo OUSG — tokenised US Treasuries via Ondo Finance. Minimum $5,000. Buy directly through the Ondo website with a compatible wallet. Requires KYC verification
• Ondo USDY — yield-bearing token backed by T-bills. Available on multiple chains. Minimum $1,000
• RealT property tokens — fractional US real estate from $50 per property. Buy on the RealT platform with USDC
• Lofty property tokens — similar to RealT, US rental properties from $50

Advanced Options

• Centrifuge (CFG) pools — lend USDC into private credit pools on Centrifuge. Higher yield, higher risk
• Maple Finance — supply liquidity to institutional lending pools. Requires understanding of credit risk
• Backed Finance bTokens — tokenised ETFs and equities (bCSPX for S&P 500, bAAPL for Apple). Swiss-regulated, available on Ethereum and Polygon

Step 4: Execute the Purchase

For DEX-based purchases (Uniswap, Curve):

• Connect your wallet to the DEX
• Select the input token (USDC) and output token (e.g., PAXG)
• Check the exchange rate and slippage tolerance (use 0.5–1%)
• Confirm the transaction and pay gas fees
• Verify the tokens appear in your wallet (you may need to add the token contract address manually)

For platform-based purchases (Ondo, RealT, Franklin Templeton):

• Complete KYC verification (passport/ID + proof of address)
• Connect your wallet
• Deposit USDC or fiat as required
• Purchase tokens through the platform interface

Step 5: Manage Your Investment

• Monitor yield: Check if yield accrues to token price (OUSG) or is paid as USDC (BUIDL)
• Track performance: Use block explorers (Etherscan) or portfolio trackers (Zerion, Zapper) to monitor holdings
• Rebalance: If your RWA allocation exceeds your target, trim and redeploy
• Security: Consider a hardware wallet for holdings above £5,000. Never share your seed phrase

Tax Considerations for UK Investors

• Capital Gains Tax: Disposing of RWA tokens (selling, swapping, or using as payment) triggers CGT. Annual allowance for 2026/27 is £3,000
• Income Tax: Yield received as USDC (e.g., BUIDL dividends) may be classified as income rather than capital gains. Consult a crypto-aware accountant
• Foreign currency gains: If tokens are USD-denominated, currency movements between GBP and USD may create additional taxable gains or losses
• ISA eligibility: RWA tokens held in a self-custody wallet are not ISA-eligible. However, some traditional stocks/ETFs with RWA exposure can be held in an ISA (see our Stocks & ETFs guide)
• Record keeping: Maintain detailed records of purchase dates, costs in GBP, and disposal proceeds. HMRC is increasing scrutiny of crypto asset disposals

What to Avoid

• Unverified platforms — stick to established names: Ondo, PAXG, RealT, Franklin Templeton. New RWA platforms appear weekly; many are scams
• Over-concentration — don't put more than 5–10% of your portfolio into RWA tokens
• Leverage — avoid borrowing against RWA tokens to buy more RWA tokens. A market dip could trigger liquidation cascades
• Hot wallet storage — for amounts over £1,000, use a hardware wallet. Software wallets are vulnerable to phishing and malware
• Fake tokens — verify token contract addresses on the official project website or CoinGecko before buying. DEXs list fake tokens with similar names

The Bottom Line

UK investors can access RWA tokenisation, but it requires more effort than buying an ETF. The most accessible routes are tokenised gold (PAXG), property tokens (RealT, Lofty), and selected Treasury products (FOBXX, USDY). Start small, learn the mechanics, and scale up as you become comfortable with self-custody and DeFi interactions. Always use a hardware wallet for meaningful amounts, and keep detailed tax records.

Learn More

• RWA Tokenisation Stocks & ETFs — simpler exposure via traditional markets
• Risks of RWA Tokenisation — understand what can go wrong
• RWA vs Traditional Investing — compare the two approaches

Nothing on this site is financial advice. All content is for educational purposes only. Always do your own research and consult a qualified financial adviser before making investment decisions. Back to all guides