Original Author: Token Dispatch, Prathik Desai
Original Compilation: Block unicorn
Preface
As Wall Street giants rapidly expand their deployment scale, tokenization is flourishing, a concept that was merely in the testing phase just a few years ago.
Multiple financial giants are simultaneously launching platforms, establishing infrastructure, and creating products that connect traditional markets with blockchain technology.
Just last week, BlackRock, VanEck, and JP Morgan made significant moves, indicating that real-world asset tokenization has gone beyond proof of concept and become a cornerstone of institutional strategy.
In today's article, we will show you why the long-awaited turning point for tokenization may have arrived, and why this matters even if you have never purchased cryptocurrency.
Trillion-Dollar Potential
"Every stock, every bond, every fund - every asset - can be tokenized. If realized, it will completely transform investment," said Larry Fink, CEO and Chairman of BlackRock, in his annual letter to investors in 2025.
Fink is referring to an opportunity that allows fund companies to tokenize assets worth over a trillion dollars in the global asset industry.
Traditional financial giants have seized this opportunity, with adoption surging over the past 12 months.
Tokenized real-world assets (RWA, excluding stablecoins) have exceeded $22 billion and grew by 40% this year alone. However, this is just the tip of the iceberg.
Consulting firm Roland Berger predicts that the tokenized RWA market will reach $10 trillion by 2030, while Boston Consulting Group estimates $16.1 trillion.
To put it into perspective, even at the lower estimate, this means growth of 500 times compared to today. If 5% of global financial assets move on-chain, we are discussing a transformation worth trillions of dollars.
Before discussing tokenization initiatives by fund companies, let's first understand what tokenization is and its significance for investors.
Combining Physical Assets with Blockchain
Three simple steps: choose a real-world asset, create digital tokens representing ownership of that asset (partially or fully), and make it tradable on the blockchain. That is tokenization.
The asset itself (government bonds, real estate, stocks) remains unchanged. What changes is how its ownership is recorded and traded.
Why tokenize? Four key advantages:
Partial ownership: Own a part of a commercial building for just $100, instead of needing millions of dollars.
24/7 trading: No need to wait for market opening or settlement clearing.
Reduced costs: Fewer intermediaries mean lower fees.
Global access: Investment opportunities previously limited by geography are now globally accessible.
"If SWIFT is postal service, tokenization is email itself - assets can bypass intermediary institutions and transfer directly and instantly," said Fink in his letter.
Silent Revolution
BlackRock's tokenized Treasury fund BUIDL has surged to $2.87 billion, growing over 4 times in 2025 alone. Franklin Templeton's BENJI holds over $750 million. JP Morgan's latest move connects its private blockchain Kinexys with the public blockchain world.
The value of tokenized US Treasuries has now approached $7 billion, a significant increase from less than $2 billion a year ago, further confirming this growth story.
More and more giant companies are joining this trend with unique products.
This week, VanEck launched a tokenized US Treasury fund accessible on four blockchains, intensifying competition in the rapidly expanding on-chain real-world assets (RWA) market.
Earlier this month, MultiBank Group, the world's largest financial derivatives institution based in Dubai, signed a $3 billion real-world assets (RWA) tokenization agreement with MAG, a real estate giant based in the UAE, and blockchain infrastructure provider Mavryk.
Smaller countries are also joining this lineup. According to the Bangkok Post, the Thai government is offering bonds to retail investors through tokenization, reducing the entry threshold from the traditional over $1,000 to $3.
Even government agencies have not missed this revolution.
The US Securities and Exchange Commission (SEC) just held a roundtable with nine financial giants to discuss the future of tokenization, a stark contrast to previous government attitudes.
For investors, this means 24/7 access, near-instant settlement, and partial ownership.
Imagine the difference between buying an entire album CD versus streaming only the songs you want to hear. Tokenization breaks assets into affordable portions, making them accessible to everyone.
Why now?
Regulatory clarity: Under US President Donald Trump, his government shifted from enforcement to promoting innovation, with crypto-friendly individuals leading government agencies.
Institutional adoption: Traditional financial giants provide legitimacy and infrastructure support for tokenization.
Technological maturity: Blockchain platforms have developed to meet institutional needs.
Market demand: Investors seek more efficient, more accessible financial products.
SEC Chairman Paul Atkins views tokenization as a natural evolution of financial markets, comparing it to the transition of audio from analog vinyl records to tapes to digital software decades ago.
The Road Ahead
Despite strong momentum, challenges remain.
Regulatory fragmentation: The global regulatory landscape remains non-uniform. The SEC's roundtable shows an open US attitude, but international coordination is insufficient. Japan, Singapore, and the EU are advancing at different speeds, with incompatible frameworks, creating compliance challenges for global tokenization platforms.
Lack of standardization: The industry lacks unified technical standards for tokenizing different asset classes. Should tokenized Treasuries on Ethereum be compatible with those on Solana? Who verifies the token's connection to the underlying asset? Without standardization, isolated liquidity pools may form instead of a unified market.
Custody and security concerns: Traditional institutions remain cautious about blockchain security. The $1.4 billion Bybit hack earlier this year raised tricky questions about immutability and recoverability.
Market education gap: While Wall Street is accelerating forward, the general public's understanding of tokenization remains largely insufficient.
Our Perspective
Tokenization could be the bridge connecting blockchain technology with mainstream finance. For those tracking blockchain evolution, this might be the biggest impact in the field so far - not creating new currencies, but changing how we access and trade existing assets.
Most people don't care about blockchain. They care about getting paid earlier, accessing investment opportunities previously reserved for the wealthy, and not being crushed by high transfer fees. Tokenization provides these benefits without users needing to understand the underlying technology.
As this field develops, tokenization might become "invisible infrastructure" - like not thinking about SMTP protocol when sending an email. You will be able to access investments more easily, with lower fees and fewer restrictions.
Traditional finance has spent centuries developing a system that benefits institutions and excludes ordinary people. For decades, we have accepted a financial system designed around institutional convenience rather than human experience. Want to trade after work? Sorry, no. Only have a $50 investment? Not worth our attention. Want to make an international transfer without losing 7% in fees? Just wait.
Tokenization may break this inequality within just a few years.
As tokenized experiences become more widespread, the conceptual barriers between "traditional finance" and "decentralized finance" will naturally dissolve. Someone who buys a tokenized bond from the Thai government for $3 may later explore DeFi protocols that generate yields. Institutional investors who first encounter blockchain through BlackRock's BUIDL may ultimately invest in native crypto assets.
This model drives real applications, not through ideological shifts, but through practical advantages that make old practices seem extremely inefficient.
