Tokenization: The Crypto Future You Didn’t Know You Needed (Or Did You?)

by

Tokenizing stocks is not the instant crypto revolution everyone’s waiting for. In fact, it’s a bit like cooking dinner without first buying the ingredients-awkward, slow, and lacking immediate rewards. But hey, if assets find their way into the blockchain system and start talking to each other, maybe something good will come of it, says NYDIG.

“The benefits to networks these assets reside on, like Ethereum, are light at first,” said Greg Cipolaro, NYDIG’s global head of research, with the subtle optimism of someone explaining a new hobby that might become a passion if you give it time. “But, if we’re lucky, as their access and interoperability grow, so too will their benefits,” he said in a note this Friday.

Let’s be real-when you tokenize assets, the most immediate benefit is the gloriously dull transaction fees. But don’t worry, the blockchain hosting them will apparently “enjoy increasing network effects” as they hold onto those assets like a teenager clutching their first smartphone.

Tokenizing real-world assets (RWAs), like US stocks, has become the latest buzz in the crypto world. Major players like Coinbase and Kraken are eyeing the potential to launch tokenized stock platforms in the US, just like their successful international counterparts. It’s a bit like seeing the cool kids in class and thinking, “Why not me?”

Securities and Exchange Commission chair Paul Atkins even suggested that the US financial system could be all about tokenization in “a couple of years.” So, Cipolaro’s verdict? Tokenization is likely going to be the next big thing. It’s like calling dibs on the new trend before it becomes mainstream.

“In the future,” Cipolaro mused, “we might see RWAs in DeFi, serving as collateral for loans, or being traded like those collectible trading cards you never actually trade.” However, don’t expect this to happen overnight. There’s some serious tech building, infrastructure shaping, and rule-making that has to happen first.

Tokenized assets can “differ greatly” (and by greatly, we mean vastly)

According to Cipolaro, tokenizing assets isn’t just about throwing a coin into a digital slot. “Their form and function differ greatly,” he said, in case you weren’t already aware that tokenization isn’t just about turning your pet cat into a crypto asset.

Take the Canton Network, for instance. It’s a non-public blockchain created by Digital Asset Holdings, and it’s currently holding the crown as the largest blockchain for tokenized assets, with a staggering $380 billion-or 91% of all RWAs’ “represented value,” as Cipolaro explains. That’s a whole lot of zeros.

On the other side of the coin (pun intended) is Ethereum, which is “by far and away” the most popular public blockchain for tokenized assets, holding $12.1 billion of RWAs. That’s not pocket change. But Cipolaro points out that even on this “open, permissionless” network, the design of tokenized assets can still be as confusing as trying to use a microwave for the first time. “These RWAs often require securities, broker-dealers, KYC/investor accreditation, whitelisted wallets, and other boring but necessary stuff from traditional finance,” he added.

It’s not all bad, though. Despite all the traditional financial baggage, blockchain tech brings some serious perks, like “near-instant settlement, 24/7 operations, programmatic ownership, transparency, auditability, and collateral efficiency.” In other words, it’s like the Uber of asset transactions-fast, transparent, and available any time of day.

“If things become more open and regulations become friendlier, as Chairman Atkins suggests,” Cipolaro said, “access to these assets should become more democratized. And when that happens, RWAs will reach new heights.”

So, investors, if you’ve been snoozing through the crypto revolution, it might be time to wake up. Even if the impact on traditional cryptocurrencies is barely noticeable now, the future of tokenized assets is definitely worth keeping an eye on.

Read More

2025-12-13 03:11