Phygital (physical + digital) describes an asset that links a real-world item to a digital token. In crypto, a phygital asset is usually a physical object, such as a trading card, sneaker or watch, stored by a custodian and represented onchain by an NFT that proves ownership.
What does phygital mean?
The word combines "physical" and "digital". It is used for any product or experience that connects the two: in retail, it can mean a store with digital features. In crypto, it means a real item owned through a token.
How phygital assets work
The physical item and the token are linked: the token holder owns the item. The item stays in storage, while the token can move between wallets in seconds. On some platforms, the holder can redeem the token to receive the physical item.
Examples of phygital assets
- Trading cards: graded Pokémon cards stored in a vault and owned onchain. See tokenized Pokémon cards.
Luxury goods: watches and handbags with a digital twin.
Fashion: sneakers sold with an NFT that proves authenticity.
Phygital vs RWA
Phygital assets are a type of real-world asset (RWA). The term "phygital" is mostly used for collectibles and consumer goods, while RWA also covers financial assets like bonds and real estate.
Frequently Asked Questions About Phygital Assets
What does phygital mean? It combines "physical" and "digital": a real item linked to a digital token.
Is a phygital asset an NFT? The digital part usually is an NFT. The physical part is a real item held by a custodian.
Can I open phygital Pokémon card packs in Trust Wallet? Yes. You can open Pokémon card packs in Trust Wallet and receive the card in your wallet as an onchain collectible.
Disclaimer: This article is for educational purposes only and is not financial advice.
