Real-world assets (RWAs) on blockchain are becoming increasingly relevant, showing growing interest from financial institutions and the market at large. However, despite successful tokenization, many challenges remain.
Tokenization of Assets: Not Always Useful
Tokenization has gained popularity, but it does not always lead to practical application. Numerous projects tokenize assets that are still in development, with insufficient integration into decentralized finance (DeFi). This results in a significant portion of tokenized assets being parked capital, unused in financial operations.
Legal Constraints: Bottlenecks for Growth
Legal limitations remain a major obstacle to the growth of the real-world asset market. Examples of integrating tokenized assets into traditional financial systems show that many are classified as securities, which restricts their use on DeFi platforms and access to them.
Institutions and Their Tokenization Strategy
Financial institutions need to develop a tokenization strategy to adapt to new conditions. It is essential to create infrastructure that supports existing processes while ensuring compliance with regulatory requirements. Companies that recognize the need to integrate tokenized assets early will be able to take leading positions in the new financial landscape.
The overall landscape of real-world assets on blockchain demonstrates that, despite positive changes and increased interest, many legal and structural challenges persist. Effective tokenization will require not only technological solutions but also careful consideration of legal aspects.
