Tracy Jin, the COO of MEXC crypto exchange, has expressed concerns regarding the centralization risks inherent in tokenizing real-world assets (RWAs). With a market cap exceeding $227 billion in stablecoins alone, the RWA landscape may be growing, but it faces substantial threats such as censorship, liquidity challenges, legal uncertainties, cybersecurity issues, and potential confiscation of assets by authorities. Jin emphasized that tokenized assets, primarily issued on permissioned or semi-centralized blockchains, remain vulnerable to intervention from state regulators. This situation could lead to tokenization resembling outdated financial structures rather than facilitating genuine financial innovation. Jin pointed out that local legal environments greatly influence asset security, particularly in politically unstable regions. The tokenization of assets is predicted to flourish over the next decade as traditional assets shift onto blockchain technology, thereby enhancing capital market accessibility and transaction efficiency. Current estimates suggest there are over $19.6 billion in RWA tokens available on-chain (excluding stablecoins), indicating a significant potential for growth in this sector.

Source 🔗