The tokenization of real-world assets is becoming a crucial focus for traditional finance companies aiming to integrate with decentralized finance, improving liquidity, accessibility, and transparency for real-world asset transactions.
An Unyielding Market
Eli Cohen, general counsel of the RWA tokenizing platform Centrifuge, highlighted high Treasury rates and growing competition among stablecoin issuers pushing the market toward “higher yielding, still safe investments.” Stablecoins, which rely on tokenized Treasurys for yields, stand to benefit from this trend.
Gensler’s Departure, Trump’s Arrival
Cohen expects the regulatory landscape to become more favorable to RWAs after the arrival of the Trump administration, potentially helping TradFi firms overcome “internal resistance” to crypto markets.
RWA Progress in 2025
Cohen anticipates security concerns associated with crypto will be “mitigated over time” as service providers mature. One example of this progress is a billion-dollar deal between Mantra and Damac to tokenize Middle Eastern assets.
The trend of real-world asset tokenization continues to gain momentum, becoming a significant aspect of the financial market. More diverse tokenized products and favorable regulatory changes are expected.
