The tokenization of real -world assets (RWAs) is recognized by institutions seeking security mobility, issuers that make private, alternative assets more accessible to retail investors and crypto enthusiasts participating in more serious conversations compared to NFT and Memecoin -Dille from recent years.
As predicted earlier this year, tokenization solidifies its position and moves into the “pragmatists” part of the adoption clock basket. 2024 ended with a market capital of $ 50 billion, and from May 2025 has surpassed $ 65 billion excl. Stableecoins.
A recent conference, Tokenizethi’s 2025, gathered industrial leaders to delve deep into specific areas of the tokenization space, celebrate innovative results and evaluate how to tackle the remaining challenges to reach mainstream. While the topics of the conference panel extinguished in granular areas, a few overall themes include 1) security mobility and new uses that improve assets in the real world and 2) the effects that tokenization will have on investment strategies and workflows.
Adding utility and security mobility
“I think that’s actually what makes this technology so powerful that you talk about the same token, but it can be used in very different ways for very different investors, as long as of course the risk frame is right,” said Maredith Hannon, head of business development, digital assets at Wisdomtree.
While tokenization of assets is straightforward, the real opportunity is to enable more streamlined use of assets compared to their traditional colleagues and meet the needs of different participants. A panel dedicated to this topic shared examples of tokenized Treasury products that can be used in both retail and institutional surroundings. Because blockchain offers an active opportunity to move more freely, a money market fund could be used as security on a primary mediation, eliminating the need to leave this position, which still earns its corresponding dividend for the investor. From a retail perspective, the same is possible with another application where the fund units can be used for payment using a debit card attached to them. The tool can be added to other, higher risk investment products as well as through various applications depending on the use case, where the common denominator is the use of blockchain technology.
Similarly, loans and borrowing are disturbed thanks to tokenization. Going to a traditional lender (usually an institution) for cash is a cumbersome process.
“The final goal in my opinion would be that my children, when they make their first priority loan, just apply anonymously on a priority loan that says ‘this is my situation, I want to borrow this for it’ and then she just borrow it [from] Many people at the same time and repayment of stableecoins … It’s already quite scary to talk to 20 banks because you want to buy an apartment, at least that’s how it works in France right now, ” said Jerome de Tychey, CEO of Cometh.
Jerome’s anecdote speaks to the force of decentralized funding for an individual and how it can quickly track a loan. Figure offers an internet -based solution for home capital lines (Helocs) and even they use Blockchain in Backend. By issuing, storing and securitizing them, they have saved 150 bps out of the process – an operational advantage. From an investment point of view, the Defi Vaults panel showed how vaults streamline something similar, but for investors, where an example is Apollos Tokenized Private Credit Fund now using this technology to enable gearing loops. This means that borrowed stablecoin can be used to buy more of the asset, which increases the yield while subject to a built -in programmatic risk frame.
Source: Securitize
However, there are still challenges that need to be solved before vaults can start, such as costs for high custody and liquidity determination, limited RWA composability in defi and minimal appeal to crypto-native users seeking higher returns. Despite these obstacles, participants expressed enthusiasm for future opportunities.
How RWAs affect traditional strategies and workflows
“The reason this technology is so powerful is because it is a computer. If you think of the whole middle and back office work from original an asset to selling it, how many intermediaries touch it and take fees, how many people ensure that borrowing straps match with received funds – Bringing this workflow on the chain is far more meaningful than just focusing on the asset itself, ” said Kevin Miao, growth manager at Steakhouse Financial.
Traditional markets have had a challenging time to incorporate less liquid, higher yield assets in investment strategies due to complex back and middle office needs for transfers, service, reporting and other factors. Automation of transfer processes and the supply of transparency to the chain would make it easier for these assets to be assigned in and out, in addition to cryptocurrencies that introduce new investment opportunities.
Cameron Drinkwater from S&P Dow Jones indexes and Ambre Soubiran from Kaiko discussed how blockchain will unlock previously inaccessible portfolio design tools. They shared how this could result in blockchain-native investment strategies that combine crypto and private asset allocations for greater diversification and new yields.
However, achieving this requires interoperability between inheritance and blockchain-based infrastructure and between blockchains itself. Some critical elements include adaptation of workflows, price transparency, rebalans, identity on chain, risk assessment considerations and risk management solutions. Giving maximum visibility in these assets and tools to navigate the on-chain markets is an important step in.
RWAs change from theoretical blockchain to practical implementation of tokenized asset in traditional and decentralized funding. The focus is now on enabling real tools through better security mobility, new financial products and more efficient workflows. By improving interoperability and identity frames, tokenization is expected to democratize illiquid assets and increase economic efficiency. For further recordings of the informative sessions, visit STM TV on YouTube.
