CRYPT : Bringing Real World Assets On Blockchain And Enabling True Decentralization With Increased Liquidity Into RWA’s.

Abstract

The tokenization of real-world assets (RWAs) on blockchain networks is rapidly emerging as a foundational component of the next generation of financial infrastructure. Traditional asset classes—such as equities, commodities, and real estate—are often hindered by limited liquidity, high entry barriers, opaque custodianship, and inefficient settlement processes. CRYPT (Collateralized Real-world Yield-bearing Protocol for Tokenization) introduces a robust, fully-reserved framework that brings RWAs on-chain through verifiable, collateral-backed digital representations. By utilizing decentralized smart contracts, Chainlink-powered oracle networks, and a dual-layered mint-and-redeem mechanism, CRYPT ensures a secure and trust-minimized bridge between off-chain assets and on-chain liquidity.

Each digital token within CRYPT (e.g., dTSLA representing TSLA stock) is 1:1 collateralized by on-chain assets like USDC or ETH, locked transparently in smart contracts. Off-chain asset verification is facilitated via Chainlink Functions, enabling authenticated data sourcing and regulatory-grade auditability. The protocol prioritizes compliance-ready architecture, integrating role-based access controls, proof-of-reserves attestations, and modularity to adapt to jurisdiction-specific legal frameworks. Furthermore, CRYPT introduces automated redemption logic to ensure that users can always exit positions at fair market value, mitigating counterparty risk and promoting systemic stability.

This paper details the system architecture, cryptoeconomic design, oracle integration, and threat models relevant to CRYPT, along with a functional case study demonstrating tokenization of a publicly traded equity. We also explore scalability considerations, cost optimization, and cross-chain interoperability. Through rigorous analysis and simulation-based validation, we establish that CRYPT offers a viable and extensible solution for bridging traditional finance (TradFi) with decentralized finance (DeFi), while laying a foundation for compliant, transparent, and accessible asset tokenization at scale.