Yield

Yield is the income an investment returns to you over a set period, shown as a percentage of what you put in. For a tokenized asset, yield is usually the cash that flows from the underlying asset - interest on a Treasury bill, rent from a building, or repayments on a loan - passed through to token holders.

Yield is not the same as total return. Return also includes any change in the asset's price or net asset value; yield is only the income component. A tokenized Treasury fund might quote a yield near the short-term US Treasury rate - roughly 4-5% through 2024-2025 - while a tokenized private-credit pool might target more, in exchange for more risk.

A key distinction is yield versus APY. A plain yield figure often ignores compounding: it tells you the income rate but not what you earn if that income is reinvested. APY folds compounding in, so for the same asset APY is usually the higher - and more comparable - number.

How yield reaches you on-chain varies. Some tokens pay distributions in a stablecoin you can claim or that lands in your wallet. Others are accumulating: the token's NAV rises as income builds, and you realize the yield when you sell or redeem. BlackRock's BUIDL pays daily-accrued dividends, while some tokenized funds simply let the share price climb.

Yield is quoted, not promised. A stated or trailing yield reflects past or current conditions; it can fall if rates drop, a borrower misses a payment, or fees rise. Always check whether a yield is net of fees and what it actually depends on.

Source: rwa.xyz, as of 2026.