The Evolution of Tokenization: A New Era for Advisors

The world of tokenization is rapidly evolving, with major companies like BlackRock, Franklin Templeton, and Fidelity Investments launching real products on the blockchain. This shift is not just about new technology, but about how these assets fit into portfolios and what they enable. In this article, Marcin Kazmierczak from Redstone explores the evolution of tokenization, and Kieran Mitha answers investor questions about tokenized investments. The key challenge lies not in creating tokens, but in decisions on compliance, identity, transfer rules, sanctions, and lifecycle management. As institutional capital moves on-chain, advisors must understand how tokenized assets behave and how they can be used in lending markets. The transition from theory to practice is evident in the growth of tokenized real-world assets in DeFi lending protocols, with over $840 million in deposits. For advisors, this reframes the role of tokenized assets, from simple wrappers to productive collateral capable of generating additional yield. However, some structural gaps remain, such as corporate actions relying on off-chain processes and illiquid assets not being fully compatible with DeFi standards. As the market continues to evolve, regulatory clarity and interoperability between blockchains, custodians, and traditional market infrastructure will be crucial for tokenization to become a standard layer in global capital markets.