Real-world asset tokenization accelerates market access, efficiency, and capital flow
Tokenization is rapidly emerging as a transformative force in global finance, with industry leaders arguing it will reshape financial markets faster than digital technology disrupted traditional media. By bringing real-world assets onchain, tokenization is changing how assets are issued, traded, and settled, creating a financial system that is more efficient, accessible, and continuous.
From legacy finance to onchain infrastructure
Tokenization refers to the process of converting traditional financial assets such as funds, bonds, or deposits into blockchain-based digital tokens. Much like newspapers and music labels were forced to adapt during the digital revolution, financial institutions are now facing a similar inflection point. The shift does not eliminate incumbents, but compels them to evolve.
Major asset managers have already launched tokenized investment funds, while global banks are testing onchain settlement systems, tokenized deposits, and real-time asset transfers. These developments signal that blockchain rails are moving from experimentation into core financial infrastructure.
Market growth and 24/7 finance
The market capitalization of tokenized real-world assets, excluding stablecoins, has reached nearly $19 billion, with most activity occurring on public blockchains. Ethereum currently hosts the majority of tokenized asset value, reflecting its role as a dominant settlement layer.
Tokenization enables round-the-clock markets, a major departure from traditional systems that shut down on weekends and holidays. It also lowers transaction costs through reduced intermediaries and shortens settlement times from days to minutes, increasing overall capital velocity.
Regulators have begun laying the groundwork for 24/7 capital markets, while major clearing institutions responsible for quadrillions of dollars in annual settlement volume have received approval to introduce tokenized financial instruments, starting with government bonds and equity indexes.
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.