Who Can Buy RWAs? KYC, Accredited and Qualified Investors Explained
Crypto tokens are usually open to anyone with a wallet. Tokenized real-world assets mostly aren’t. Because many RWAs are securities, issuers have to know who their investors are and whether they’re allowed to sell to them.
Why there are restrictions
In most countries, selling securities to the public requires a registered offering, with a prospectus and ongoing reporting. Many tokenized products avoid that cost by using exemptions that limit who can buy:
- Regulation D (US): private offerings to accredited investors.
- Section 3(c)(7) funds (US): funds limited to qualified purchasers.
- Regulation S (US): offerings made only outside the United States, to non-US persons.
Registered products, such as US-registered money market funds, can be sold to anyone but cost much more to set up.
The investor categories
Accredited investor (US). Individuals with income over $200,000 ($300,000 jointly) in each of the last two years, or net worth over $1 million excluding their main home, or holders of certain securities licenses.
Qualified purchaser (US). Generally individuals with at least $5 million in investments, or institutions with at least $25 million. BlackRock’s BUIDL is limited to qualified purchasers.
Non-US person. For Reg S products such as USDY, you must be outside the US. Other countries also have their own professional-investor rules.
How KYC works for tokens
- You complete identity checks with the issuer or its transfer agent.
- Your wallet address is added to an allowlist.
- The token contract only allows transfers between allowlisted wallets.
- If you send tokens to a wallet that isn’t approved, the transfer fails.
Standards such as ERC-3643 build these checks into the token itself.
What’s open to whom
| Product type | Typical eligibility | Examples |
|---|---|---|
| Gold tokens | Anyone (KYC for redemption) | PAXG, XAUT |
| Registered funds | Retail, in supported countries | BENJI |
| Offshore notes | Non-US investors | USDY |
| Private funds | Accredited or qualified investors | OUSG, BUIDL |
| Tokenized stocks | Mostly non-US investors | xStocks |
Each asset page’s key facts list who can invest, where the issuer publishes it. Rules change, so always confirm with the issuer.
FAQ
What is an accredited investor?
In the US, an individual with income over $200,000 (or $300,000 with a spouse) in each of the last two years, or a net worth over $1 million excluding their main home, or who holds certain financial licenses. Entities qualify through assets or their owners.
What is a qualified purchaser?
A higher US threshold: generally an individual or family company with at least $5 million in investments, or an institution with at least $25 million. Some funds, including BlackRock's BUIDL, require it.
Which RWAs can anyone buy?
Gold tokens such as PAXG and XAUT trade freely on exchanges, and some registered funds such as Franklin Templeton's BENJI are open to retail investors through the issuer's app. Most tokenized funds and notes restrict who can hold them.
Assets in this guide
Key terms
More guides
This guide is general information, not investment advice. Check an issuer's own documents before investing.