The tokenization of active active worlds (RWAS) is recognized by institutions looking for collateral mobility, issuers making private and alternative assets more accessible to retail investors and crypto enthusiasts engaging more serious conversations compared to the NFT and the same Craze in recent years.
As expected earlier this year, the tokenization consolidates its position and moves in the “pragmatist” part of the adoption bell curve. 2024 ended with a market capitalization of $ 50 billion and in May 2025 exceeded $ 65 billion, excluding stablecoins.
A recent conference, TOKENIZETHIS 2025, brought together industry leaders to deeply dive into specific fields of tokenization space, to celebrate innovative achievements and to assess how to meet the remaining challenges to achieve the consumer adoption. While the subjects of the Conference Committee have immersed themselves in the granular zones, a couple of primordial themes to highlight includes 1) collateral mobility and the improvement of real assets of the real world and 2) The effects that tokenization will have on investment strategies and workflows.
Addition of collateral usefulness and mobility
“I think that is actually what makes this technology so powerful is that you are talking about the same token, but it can be used in a very different way for very different investors as long as of course the risk framework is correct”, said Maredith Hannon, business development manager, digital assets in Wisdomtree.
Although tokenization assets are simple, the real opportunity lies in the allowing a more rationalized use of assets compared to their traditional counterparts and by meeting the needs of the various participants. A panel dedicated to this subject has shared examples of tokenized cash products which can be used in retail and institutional selling areas. Since the blockchain allows an asset to move more freely, a fund on the money market could be used as a guarantee on a prime brokerage house, eliminating the need to get out of this position, which therefore gains its corresponding return for the investor. From a retail point of view, the same is true with a different application where fund units can be used for payment using a debit card linked to them. The usefulness can be added to other higher risk investment products as well as via different applications depending on the use case, the common denominator being the use of blockchain technology.
In the same way, loans and borrowings are disturbed thanks to tokenization. Going to a traditional lender (generally an institution) for money is a heavy process.
“The final objective in my opinion would be that my children during their first mortgage apply anonymously on a mortgage saying” It is my situation that I want to borrow this for that “and then it simply borrows [from] Many people at the same time and the reimbursement of stablescoins … It is already quite intimidating to speak to 20 banks because you want to buy an apartment, it is at least as it works in France at the moment, “ said Jerome de Tychey, CEO of Cometh.
Jerome’s anecdote talks about the power of decentralized finance for an individual and the way she can accelerate a loan. The figure offers an internet -based solution for home credit lines (helocs) and even they use blockchain in the backend. By emitting them, by working and securing them, they saved 150 bps from the process – an operational advantage. From an investment point of view, the Panel Defiates presented how vaults rationalize something similar but for investors, with an example being the tokenized private credit fund of Apollo now using this technology to allow leverage. This means that the borrowed stable can be used to buy more assets, increasing the yield while being the subject of an integrated programmatic risk framework.
Source: secure
However, challenges remain to be resolved before the vault chests can take off, such as high police and liquidity costs, the limited composibility of RWA in DEFI and a minimum call for crypto-native users in search of higher yields. Despite these obstacles, the participants expressed their enthusiasm for future possibilities.
How Rwas have an impact on traditional strategies and workflows
“The reason why this technology is so powerful is that it is a computer. If you think of all the work of the environment and the back office, from the origin of an asset for sale, how many intermediaries touch it and take costs, how many people ensure that the loan bands correspond to the funds received – Bringing this workflow on a chain is much more significant than focusing on the assets itself, “ said Kevin Miao, growth manager at Steakhouse Financial.
Traditional markets have had a difficult period to incorporate less liquid and make higher assets in investment strategies due to the complex back and middle needs of the Office for transfers, maintenance, reports and other factors. The automation of transfer processes and the supply of chain transparency would facilitate the allocation of these assets in and outside, in addition to cryptocurrencies introducing new investment opportunities.
Cameron Drinkwater of S&P Dow Jones and Amber Soubiran of Kaiko indicates how the blockchain would unlock wallet construction tools previously inaccessible. They explained how it could lead to native blockchain investment strategies combining cryptography and private asset allowances to greater diversification and new sources of performance.
The realization of this, however, requires interoperability between heritage and the blockchain-based infrastructure and between the blockchains themselves. Certain critical elements include alignment of workflows, price transparency, rebalancing, chain identity, risk assessment considerations and risk management solutions. Providing maximum visibility in these assets and tools to navigate the chain markets is a key step.
The Rwas go from theoretical blockchain to the practical implementation of tokenized assets in traditional and decentralized finance. Emphasis is now on activating real usefulness thanks to better collateral mobility, new financial products and more efficient workflows. By improving interoperability and identity executives, tokenization should democratize illiquid assets and improve financial efficiency. For additional records of information sessions, please visit STM TV on YouTube.
