The surge in the tokenization of real-world assets (RWAs) is gaining traction among institutions aiming for better collateral mobility, as issuers work to simplify access to private assets for retail investors. Unlike the frenzy around NFTs and memecoins in previous years, there is a growing seriousness in discussions within the crypto community.
As anticipated earlier this year, tokenization has firmly established itself in the ‘pragmatist’ phase of adoption, expanding its market cap from $50 billion at the end of 2024 to over $65 billion in May 2025, excluding stablecoins.
An industry conference, TokenizeThis 2025, gathered thought leaders to explore various dimensions of tokenization, sharing innovative milestones while addressing persistent obstacles towards mainstream adoption. Key themes emerged, focusing on collateral mobility and how tokenization can reshape investment strategies.
Enhancing Utility and Collateral Mobility
I believe the true strength of this technology lies in its versatility, enabling different applications for various investors, as long as the risk framework is properly aligned, remarked Maredith Hannon from WisdomTree.
While the process of asset tokenization is relatively straightforward, the real advantage comes from facilitating more efficient use compared to traditional assets and catering to the varying needs of participants. Panels discussed innovations such as tokenized treasury products suitable for both retail and institutional users, highlighting benefits like blockchain-enabled asset mobility.
Jerome de Tychey, CEO at Cometh, illustrated how decentralized finance aids individuals in securing loans more swiftly, eliminating the cumbersome traditional banking process. For instance, Figure employs blockchain methods to enhance internet-based cash flow flexibility while also cutting costs significantly.
RWAs and Their Impact on Established Strategies
This technology’s transformative potential stems from its computational capabilities. It reduces the need for intermediaries throughout the lifecycle of asset management, enhancing efficiency, stated Kevin Miao of Steakhouse Financial.
Additionally, speakers from S&P Dow Jones Indices and Kaiko discussed how blockchain opens up access to new tools in portfolio construction, potentially integrating crypto assets with private investments for optimal diversification.
In summary, RWAs are transitioning from theoretical concepts to real-world implementations. The focus is shifting towards unlocking genuine utility through improved collateral mobility, innovative financial products, and enhanced operational workflows. To explore more insights from these sessions, visit STM TV on YouTube.
