The token of real world assets (RWAS) is obtaining the recognition of institutions that seek collateral mobility, emitters that make private and alternative assets more accessible to retail investors and cryptocurrency enthusiasts who participate in more serious conversations compared to the NFT and Memecoin traz of recent years.
As predicted earlier this year, tokenization is solidifying its position and moves towards the portion of “pragmatic” of the adoption bell curve. 2024 ended with a market capitalization of $ 50 billion and as of May 2025 has exceeded $ 65 billion, excluding Stablecoins.
A recent conference, Tokenizethis 2025, brought together the leaders of the industry to immerse themselves deeply in specific areas of the tokenization space, celebrating innovative achievements and evaluating how to address the remaining challenges to achieve general adoption. Although the topics of the conference panel deepened in granular areas, a couple of general issues to highlight include 1) collateral mobility and a new utility that improves the assets of the real world and 2) the tokenization of effects will have in the investment strategies and the workflows.
Add utility and collateral mobility
“I think that is actually what makes this technology so powerful is that you are talking about Token itself, but it can be used in very different ways for very different investors, provided that the risk framework is correct.” Said Maryesh Hannon, Chief of Business Development, Digital Assets at Wisdomtree.
While the tokenization of assets is simple, the real opportunity lies in allowing the most simplified use of assets compared to their traditional counterparts and addressing the needs of different participants. A panel dedicated to this topic shared examples of tokenized treasury products that can be used in retail and institutional environments. Because Blockchain allows an asset to move more freely, a monetary market fund could be used as a guarantee in a main broker, eliminating the need to get out of that position, so it still obtains its corresponding performance for the investor. From an retail perspective, the same is possible with a different application in which the substantive units can be used for payment using a debit card linked to them. The profit can be added to other higher risk investment products through different applications depending on the use case, the common denominator being the use of blockchain technology.
Along the same lines, loans and loans are being interrupted thanks to tokenization. Going to a traditional lender (generally an institution) by cash is a cumbersome process.
“The ultimate goal in my opinion would be that my children when making their first mortgage only apply anonymously to a mortgage that says ‘this is my situation, I want to borrow this’ and then she simply borrows it. [from] Many people at the same time and reimburseing Stablecoins … It is already quite discouraging to talk to 20 banks because you want to buy an apartment, at least this is how it works in France at this time. “ Jerome de Tychey said CEO of Cometh.
Jerome’s anecdote speaks of the power of decentralized finances for an individual and how he can accelerate a loan. The figure offers an internet -based solution for home equity lines (Heloc) and are even using the block chain in the backend. When issuing, storing them and title, they have saved 150 bp of the process, an operational advantage. From the point of view of the investment, the Defi Vaults panel showed how the vaults rationalize something similar but for investors, with an example of the private credit fund to Apollo now using this technology to enable leverage loops. This means that the stable borrowed can be used to buy more of the assets, increasing the performance while subject to a incorporated programmatic risk framework.
Source: Securitizing
However, the challenges remain to be resolved before the vaults can take off, such as the high costs of provision of custody and liquidity, the limited composability of RWA in Defi and a minimum attraction for cryptographic users looking for greater yields. Despite these obstacles, participants expressed enthusiasm for future possibilities.
How Rwas are impacting traditional work strategies and flows
“The reason why this technology is so powerful is because it is a computer. If you think about all the work of the center and the back office, from originating an asset to selling it, how many intermediaries they touch and take rates, how many people ensure that the loan tapes coincide with the funds received – Bringing that workflow in the chain is much more significant than just focusing on the asset itself “, Kevin Miao, Chief of Growth of Steakhouse Financial said.
Traditional markets have had a challenging moment that incorporates less liquid assets and higher performance in investment strategies due to the complex needs of the Office and the average office for transfers, services, reports and other factors. Automate transfer processes and provide transparency in the chain would facilitate these assets to be assigned inside and outside, in addition to cryptocurrencies that introduce new investment opportunities.
Cameron Drinkwater of the S&P Dow Jones and Ambre Subiran de Kaiko indices discussed how Blockchain will unlock previously inaccessible portfolio construction tools. They shared how this could result in native blockchain investment strategies that combine assignments of cryptographic and private assets for greater diversification and new sources of performance.
However, achieving this requires interoperability between the infrastructure based on Legacy and Blockchain and between the block chains themselves. Some critical elements include the alignment of workflows, price transparency, rebalancing, chain identity, risk assessment considerations and risk management solutions. Providing the maximum visibility of these assets and tools to navigate in the markets in the chain is a key step.
The RWA are changing the theoretical blockchain to a practice implementation of tokenized assets in traditional and decentralized finances. The approach is now allowing real utility through better collateral mobility, new more efficient financial products and workflows. By improving interoperability and identity frameworks, tokenization is expected to democratize ilequid assets and improve financial efficiency. For additional recordings of the information sessions, visit STM TV on YouTube.
