Not All RWAs Should Be Tokenised

While almost any asset can technically be tokenised, not all RWAs make sense for tokenisation

One can argue for the use case of tokenising fractional shares of high value collectibles like art, records etc, but the most practical assets to tokenise are those that generate cash flow.

These assets provide several advantages:

Predictable Yield: Assets with regular, contractual cash flows enable the creation of yield-bearing tokens that provide ongoing returns to holders, rather than relying solely on asset appreciation.

Legal Clarity: Cash-flow contracts have clear terms, repayment schedules, and legal frameworks that can be translated into smart contracts, reducing ambiguity and increasing transparency.

Risk Assessment: The performance of cash-flow assets can be evaluated based on historical payment patterns and contractual terms, allowing for better risk management and pricing.

Sustainable Economics: Unlike assets that depend on speculative value appreciation, cash-flow assets generate real yield from real business activities, creating sustainable token economics.

Stubble's approach centres on tokenising cash-flow contracts—where each token represents a fractional right to the receivables generated by the underlying asset—rather than tokenising assets that lack income generation. This ensures that every token launched on Stubble has real, ongoing value backed by actual cash flows.