# 2.3 NFTs as the Entry Point

NFTs possess technical characteristics that make them natural carriers for RWAs:

* Minimum Proof Unit (MPU): NFTs can map fractional ownership, claims, or income rights of RWAs into verifiable on-chain objects.\ <br>
* Composability & Fractionalization: NFTs can be fractionalized into fungible tokens (F-NFTs) for DeFi liquidity pools, lending markets, and derivatives.\ <br>
* Retail familiarity: Compared to abstract bonds or invoices, NFTs have higher user awareness and acceptance, lowering barriers to retail adoption.\ <br>

Cross-asset adaptability: From real estate to carbon credits to collectibles, NFTs can serve as a Universal Asset Wrapper (UAW) across categories.


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