Asset tokenization in Asia is attracting investor attention due to a clear regulatory environment, creating new investment opportunities.
Asia's Role in Tokenization
According to Maarten Henskens, head of protocol growth at Startale Group, Asia has emerged as a leading region in asset tokenization, attracting capital that was previously sidelined. He noted that Western institutions are setting up operations in the Asia-Pacific not just to follow capital but to participate in innovation. Japan and Hong Kong show distinct approaches to adopting real-world asset tokenization.
Tokenized Bonds and ETFs
The rise of tokenized bonds and ETFs plays a key role in attracting traditional investors into the crypto market. In Japan, tokenized real estate assets are becoming accessible to retail investors. Henskens emphasized the efficiency of tokenization, improving fund administration and enhancing transparency, which appeals to traditional investors who might otherwise be hesitant to enter the crypto space.
Tokenization in Dubai
Dubai is also making strides in tokenization. Local regulators are introducing progressive frameworks that facilitate the issuance and trading of tokenized securities. In May, the Virtual Asset Regulatory Authority updated its guidelines to include provisions for RWA tokenization. Last month, two apartments were successfully tokenized and sold, generating interest from investors across more than 35 countries.
Thus, Asia demonstrates significant progress in the field of tokenization, creating diverse opportunities for innovation and investment, which attract the attention of global players in the financial market.
