If you are thinking of how it works here are Use Cases of Web3 and RWA Integration for understanding

Real Estate: Tokenised real estate allows individuals to invest in properties worldwide, reducing barriers to entry in the real estate market.
Art and Collectibles: Tokenizing art and collectibles ensures provenance and allows artists to benefit from secondary sales through royalties.
Commodities: Tokenized commodities like gold or oil can be traded 24/7, providing more flexibility to investors.
Intellectual Property: Musicians, writers, and content creators can tokenize their intellectual property, providing fans with ownership stakes and a share of revenue.
Challenges and Considerations

Despite the promise of Web3 and RWA integration, challenges exist, including regulatory compliance, custody of physical assets, and market volatility. Governments and regulatory bodies are still grappling with how to regulate these new digital asset classes, which may affect their adoption.

Conclusion

Web3 technology is poised to reshape the financial landscape by bridging the gap between digital and physical assets through the tokenization of Real-World Assets (RWA). This innovation holds the potential to democratize access to assets, increase liquidity, and unlock new opportunities for investors and creators alike. While challenges remain, the intersection of Web3 and RWAs represents a promising frontier in the ongoing evolution of the internet and finance.