A cross-chain RWA bridge is the technical mechanism for moving tokenized real-world assets from one blockchain to another. Compared to standard crypto token bridging, cross-chain RWA bridging carries additional complexity: real asset tokens are typically bound to KYC/AML whitelists, investor eligibility restrictions, and geographic limits. These compliance states must be synchronized during the cross-chain transfer — otherwise the token on the destination chain becomes a "compliance-stripped shell token" that cannot be redeemed within the original asset's regulatory framework. Major cross-chain RWA solutions include Wormhole's Native Token Transfer (NTT), LayerZero's Omnichain Fungible Token (OFT), and multi-chain native deployment where issuers deploy independently on each chain (e.g., BENJI deployed natively on Stellar, Polygon, and Arbitrum). Each approach makes different trade-offs in security, decentralization, and regulatory viability.

ERC-20 is the foundational <a href="https://claude-me.com/en/glossary/core-concepts/token/">Token</a> standard on Ethereum, defining the rules every token must follow: how to transfer, how to check balances, how to let others spend on your behalf. USDC, DAI, LINK — virtually every Ethereum token you've heard of runs on ERC-20. Its core property is permissionlessness: any address can hold and transfer tokens without identity verification. That's exactly why RWA tokens usually don't use pure ERC-20 — they add a compliance layer on top (like ERC-3643), because real-asset transfers typically require KYC restrictions.

ERC-3643 (also called T-REX, <a href="https://claude-me.com/en/glossary/core-concepts/token/">Token</a> for Regulated Exchanges) is an Ethereum token standard specifically designed for compliant securities <a href="/en/glossary/tokenization/tokenization/">Tokenization</a>. Unlike ordinary ERC-20 tokens (any address can receive them), ERC-3643 automatically verifies whether the recipient address is on the KYC whitelist before each token transfer — if not whitelisted, the transaction is automatically rejected. Ondo Finance's OUSG and USDY, Franklin BENJI, all use ERC-3643 or similar compliant token standards, ensuring tokens circulate only among compliant investors.

An 'oracle' is the bridge tool that brings off-chain data (asset prices, NAV, interest rates) into smart contracts. Oracle risk refers to the risk that when this bridge is manipulated, malfunctions, or experiences delays, smart contracts execute based on incorrect data. In RWA, incorrect oracle-reported NAV or asset prices can cause incorrect liquidations, incorrect fee calculations, or token holder losses. Representative case: Mango Markets suffered a $114M <a href="https://claude-me.com/en/glossary/pegging-mechanisms/oracle-manipulation/" target="_blank">Oracle Manipulation</a> attack in 2022.

Self-executing code deployed on a blockchain — when preset conditions are met, the contract automatically triggers and executes corresponding actions, requiring no human intervention or intermediary institutions. In RWA, smart contracts handle all core functions: <a href="https://claude-me.com/en/glossary/core-concepts/token/">Token</a> minting, transfer, whitelist verification, NAV updates, automatic interest rebasing, and more. ERC-3643 is a <a href="/en/glossary/blockchain-fundamentals/smart-contract/" target="_blank">Smart Contract</a> standard specifically designed for compliant RWA.

The process of converting real-world assets — such as real estate, bonds, or commodities — into digital tokens on a blockchain, enabling fractional ownership, trading, and transfer.