Bank of America in its new analyst report presents the tokenization of real-world assets (RWAs) as the next significant evolution in investment products, describing the process as 'Mutual Fund 3.0'.
Beginning the Journey Towards Tokenization
In a report published on September 5, 2025, it is noted that the financial industry is at the beginning of a significant shift towards moving traditional assets like stocks, credit, and real estate onto blockchain-based platforms. According to analysts led by Craig Siegenthaler, investor focus is shifting from stablecoins to the tokenization of real assets.
Growing Market for Tokenized Assets
According to figures from RWA.xyz, the value of tokenized real assets on-chain is now over $28 billion, mainly in private credit and Treasuries. Tokenized money market funds may be the first to utilize them as they can offer better returns than stablecoins.
Impact on Traditional Banking Sector
The Bank of America report highlights how vulnerable large banks like Citi are, noting that the company's transaction services business makes up about 40% of its bottom line. However, analysts also suggested that investors might be 'underestimating Citi's expertise and adaptability' in navigating this technological transformation.
Bank of America analysts emphasize that tokenization represents a powerful technology that can fundamentally change asset management and capital markets. The involvement of major financial names underscores that this is not a speculative trend, but a planned change with the potential to transform old financial systems.
