Regulatory Progress and DeFi Integration Seen as Key to Expanding Tokenized Assets
The tokenization of real-world assets is unlikely to deliver immediate, transformative benefits to blockchain networks, but its long-term impact could expand significantly if access becomes more open and interoperable, according to research from NYDIG.
NYDIG’s global head of research, Greg Cipolaro, said the early benefits of tokenized assets are relatively light, primarily limited to transaction fees and incremental network activity on blockchains where these assets are issued. However, he noted that value could scale as interoperability, composability, and access improve, particularly if tokenized assets are more deeply integrated into decentralized finance.
Tokenized real world assets, including equities, have gained momentum as major trading platforms explore onchain versions of traditional securities. Cipolaro pointed to growing regulatory openness, noting that policymakers expect tokenization to become part of the financial system within the next few years — signaling that tokenization is emerging as a long-term structural trend.
At present, tokenized assets differ widely in design and deployment. While non-public networks dominate overall represented value, Ethereum remains the leading public blockchain for tokenized assets. Even so, many tokenized securities still require traditional financial controls such as KYC, whitelisted wallets, and transfer agents, limiting their composability.
Despite these constraints, blockchain-based assets already offer advantages like near-instant settlement, 24/7 operation, transparency, and improved collateral efficiency. Cipolaro said that if regulations evolve and access becomes more democratized, tokenized assets could achieve broader reach — making them increasingly relevant to both traditional finance and DeFi participants.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.