RWAs vs Stablecoins: What's the Difference?
Stablecoins and tokenized real-world assets look alike from a distance: both are tokens backed by assets held off-chain, often the same Treasury bills. The difference is who gets the return and what the token legally is.
The core difference
- A stablecoin like USDT or USDC is a payment token. The issuer holds the reserves and keeps the interest they earn. You get a token that should always be worth $1.
- A tokenized RWA like BUIDL or USDY is an investment. You own a share of a fund or a note, and the interest is passed to you.
Side by side
| Stablecoins | Tokenized treasuries and MMFs | |
|---|---|---|
| Purpose | Payments, trading, settlement | Earning yield on dollars |
| Yield to holder | None | Close to the T-bill rate, minus fees |
| Legal status (US) | Payment stablecoin | Security |
| Access | Anyone, usually no KYC to hold | Usually KYC and eligibility rules |
| Price | Fixed at $1 | $1 with payouts, or a rising price |
| Transfers | Free | Often restricted to approved wallets |
Why the regulation differs
In the US, the GENIUS Act of July 2025 created a framework for payment stablecoins and barred issuers from paying interest to holders. That keeps payment stablecoins and investment products apart: once a token passes on yield, it looks like a security and falls under securities law, which brings KYC, investor limits and transfer restrictions.
Where they meet
The two worlds are closely linked:
- Stablecoin reserves are increasingly held in tokenized treasury funds.
- Investors buy RWAs with stablecoins and redeem back into them.
- Some “yield-bearing stablecoins” are really tokenized notes or funds, and carry the same kinds of risk as other RWAs.
Which to use
Stablecoins are better for moving money and trading. Tokenized treasuries are better for parking dollars you don’t need right away, if you are eligible to hold them. Many treasuries and DAOs hold both.
For the current size of each tokenized category, see tokenized treasuries and money market funds.
FAQ
Are stablecoins real-world assets?
Fiat stablecoins hold real-world reserves, mostly cash and Treasury bills, but holders don't own those reserves or earn their return. Most RWA trackers, including this one, count stablecoins separately.
Why don't stablecoins pay interest?
In the US, the GENIUS Act, signed in July 2025, bars payment stablecoin issuers from paying interest or yield to holders. Products that pass on yield, like tokenized treasury funds, are treated as securities instead.
What are yield-bearing stablecoins?
Tokens marketed as yield-bearing stablecoins are usually tokenized funds or notes (such as USDY), or tokens whose yield comes from DeFi strategies. They are not payment stablecoins and carry different risks.
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This guide is general information, not investment advice. Check an issuer's own documents before investing.