UPSC CSE PRELIMS 2026, General Studies, Asset Tokenization - Questions and Answers

Browse the questions, answers and explanations for Asset Tokenization in General Studies, UPSC CSE PRELIMS 2026.

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UPSC CSE PRELIMS 2026 General StudiesAsset Tokenization

1.

Which of the following statements about Real-World Assets (RWA) Tokenization are correct?

Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
Tokenization of real world assets offers 24×7 access, promoting financial inclusion.
Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.

Select the answer using the code given below:

A

1, 2 and 3

B

2 and 3 only

C

1 and 2 only

D

1 and 3 only

Correct Answer:

(A) 1, 2 and 3

Explanation:

Tokenization means converting ownership or value in a real-world asset into digital tokens on a blockchain. Such structures can support round-the-clock access and fractional participation, which is why statement 2 is accepted. Statement 3 is also correct because tokenization can widen access to investment opportunities that were earlier harder for small investors to enter.