Real-world asset (RWA) tokenization is becoming an increasingly relevant topic, particularly in the Asian region, which possesses significant opportunities but also faces certain challenges.
State of Real-World Asset Tokenization Market
The total market for RWA tokenization in Asia stands at $23 billion, despite a recent 260% surge in the first half of 2025. The region, with $11 trillion in private assets and a $2.2 trillion corporate financing gap, serves as a natural proving ground for mobilizing idle capital and widening investor access to traditionally illiquid asset classes.
Regulation in Asia: Strengths and Weaknesses
Asia's regulatory environment is often described as fragmented, but this complexity is becoming its greatest asset. The diversity of approaches creates platforms for testing and adapting new models. For example, Singapore and Hong Kong lead in balancing experimentation with consumer protection, while countries like Thailand and Japan are charting their own paths.
Need for Collaboration to Scale
Achieving sustained institutional participation requires clarity and stability. Across Asia, policymakers, banks, and technology firms are co-creating rules and systems that enable transparent tokenized transactions. Singapore, for instance, is actively developing infrastructure to support asset tokenization through partnerships with international organizations.
Instead of waiting for a universal standard, Asia can move forward by developing its own rules and models. This is becoming the foundation for large-scale implementation of real-world asset tokenization, demonstrating that collaboration amidst diversity can be the driving force for transitioning from pilot projects to mainstream practices.
