As crypto adoption and interest in tokenization grows, there is increasing demand to bridge blockchain technology with real-world physical assets (RWAs) like gold, real estate, art and more. However, legally connecting digital tokens to physical asset ownership has remained a major hurdle.

London-based project Mattereum aims to solve this by providing a robust legal framework to formally link RWAs and their blockchain token representations. Their legal tech solution streamlines real-world asset tokenization while ensuring proper ownership rights are maintained.

The "Asset Passport" At the core of Mattereum's offering is the "Asset Passport" - a legal instrument that establishes an official bond between any given RWA and its associated digital token living on a blockchain like Ethereum.

The Asset Passport confirms that the token holder is the rightful legal owner of the underlying physical asset it represents. It also provides warranties around accurate asset details like descriptions, condition and authenticity that buyers can rely on.

Based on U.K. digital commerce laws that are internationally enforceable per the New York Arbitration Convention, the Asset Passports make tokenized real-world asset ownership globally recognized across over 170 countries.

Tokenizing High-Value Asset Classes By legally validating on-chain RWA ownership, Mattereum aims to boost liquidity and expand the market for trading tokenized assets like gold, real estate, collectibles, and fine art.

These high-value assets can be difficult to fractionalize and trade efficiently using traditional methods. However, blockchain technology combined with Mattereum's legal services allows assets to be easily subdivided into tokens representing smaller ownership pieces.

Users can choose to create complete 1:1 non-fungible token (NFT) "digital twins" of assets or fractionalized tokens adhering to standards like ERC-20 for fungible asset splits.

Opening Up Global RWA Markets Since launching services in 2021 by tokenizing items like Hollywood film memorabilia, Mattereum has made strides toward its goal of tokenizing a $500,000 property and bringing real estate onto Ethereum.

By bridging blockchain's inherent advantages like 24/7 global accessibility and programmability with enforceable legal rights to real-world assets, Mattereum aims to unlock massive untapped value and markets for tokenized RWAs.

Projects can utilize Mattereum's legal infrastructure to offer investable RWA tokens to a worldwide audience, bringing unprecedented liquidity. This could tremendously boost the efficiency of international trade and asset transfers.

While still an emerging field, Mattereum and similar initiatives are paving the way for real-world assets like property, commodities and luxury goods to become integrated into blockchain economies and decentralized finance.