On-chain finance is no longer hypothetical, but the road ahead — powered by rapid infrastructure improvements and shifting market conditions — is where the real transformation begins, says Carlos Domingo of Securitize.
Real-world asset (RWA) tokenization has passed its proof-of-concept phase. With over $20 billion in tokenized assets and institutional momentum from top-tier asset issuers such as Apollo, BlackRock, Hamilton Lane, KKR, and VanEck, among others, on-chain finance is no longer hypothetical. But the road ahead — powered by rapid infrastructure improvements and shifting market conditions — is where the real transformation begins.
Here are the five key technological and five key market drivers shaping the next three years of tokenization:
Technological drivers
1. Blockchain infrastructure maturity
Layer 1s and layer 2s are scaling quickly, reducing fees and improving UX. Seamless wallet usage, account abstraction, and lower gas costs will make holding tokenized assets frictionless for institutions and individuals alike.
2. Smart contract evolution
Contracts are becoming safer, more composable, and increasingly automated. Expect AI to assist in designing and auditing contracts that power yield, compliance, and asset servicing — all with less manual oversight.
3. On-chain identity integration
Wallet-linked KYC and decentralized identity protocols will streamline onboarding without sacrificing privacy, a critical breakthrough for institutional adoption and retail accessibility.
4. Institutional-grade custody
MPC wallets, recovery protocols, and regulated custody options will resolve long-standing custody concerns, making tokenized assets truly investable at scale.
5. Regulated marketplaces & exchange integration
More tokenized assets will trade on SEC-regulated ATS platforms and become available on-chain via compliant DEXs, driving liquidity and transparency across asset classes.
Market drivers
1. Regulatory clarity
Regulators in the U.S., EU, and APAC are advancing frameworks for tokenized securities, stablecoins, and DeFi. As clarity grows, so will institutional confidence.
2. Tokenized treasuries > stablecoins
Tokenized T-bills (e.g., BUIDL, VBILL) are emerging as superior collateral and yield-bearing instruments, offering institutional-grade safety with better capital efficiency.
3. Stablecoins as a global settlement layer
With $150B+ in circulation, stablecoins are evolving into programmable cash, enabling instant settlement, treasury funding, and FX trades across blockchains.
4. Full asset class coverage
Public equities, private equity, bonds, credit, real estate, and commodities are all heading on-chain. Tokenization is expanding from yield products to the full capital stack.
5. Institutional & emerging market acceleration
Wall Street is actively piloting tokenization infrastructure, while emerging markets are leapfrogging legacy systems by going directly to blockchain rails.
Conclusion
The next phase of RWA tokenization will be driven by scalability, composability, and credibility. Institutions are no longer asking if they should tokenize, but how fast they can do it. The result will be a 24/7, globally accessible financial system — built on trustless rails, powered by programmable assets.
Source: coindesk
