The Evolution of Tokenization: A New Era for Advisors

In this article, Marcin Kazmierczak from Redstone explores the evolution of tokenization, from concept to allocation, and its implications for advisors. The growth of tokenized assets is evident, with companies like BlackRock, Franklin Templeton, and Fidelity Investments launching products on the blockchain. However, the real challenge lies in compliance, identity, transfer rules, sanctions, and lifecycle management. The Tokenization & RWA Standards Report 2026 examines how these systems are being built. For advisors, the choice of compliance architecture directly affects how an asset behaves, determining its ability to move across chains, integrate with DeFi protocols, and serve as collateral. Institutional capital is moving on-chain, with deposits of tokenized real-world assets in DeFi lending protocols surpassing $840 million. As tokenized assets become more mainstream, advisors must consider how they fit into portfolios, their role in lending markets, and the emerging risk ratings frameworks. The transition from theory to practice is most evident in how tokenized assets are used in lending markets, with investors posting tokenized assets as collateral, borrowing against them, and re-deploying the capital. The mechanics are new, but the logic is not, and it is a programmatic version of traditional capital efficiency strategies. For advisors, this reframes the role of tokenized assets, from simply being wrappers around existing products to becoming productive collateral, capable of generating additional yield and participating in broader strategies. Credit risk is becoming explicit, with emerging DeFi risk ratings frameworks introducing continuous, on-chain risk assessment. However, some structural gaps remain, with corporate actions still relying heavily on off-chain processes, and illiquid assets not yet fully compatible with DeFi standards. Until these gaps are addressed, tokenization will continue to scale unevenly. In an Ask an Expert section, Kieran Mitha answers investor questions about tokenized investments, discussing the need for interoperability, regulatory clarity, and efficiency for tokenization to become a standard layer in global capital markets.