The tokenization of real world assets (RWAs) is increasingly recognized by institutions, issuers, and crypto enthusiasts, marking a significant transition from speculative interests to practical applications. By May 2025, the market cap of RWAs had grown to over $65 billion, with a focus on enhancing collateral mobility and creating new financial utilities. Industry leaders discussed the potential of tokenization to automate workflows and increase transparency in asset management. Challenges remain, such as high costs of custody and liquidity, and the need for interoperability between traditional and blockchain systems. However, innovations in tokenized products, such as collateral mobility for money market funds and streamlined mortgage processes via decentralized finance, illustrate the transformative impact on investment strategies. The realization of these benefits could lead to greater democratization and efficiency in financial markets, paving the way for mainstream adoption of tokenized assets.

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