In this article, Marcin Kazmierczak from Redstone explores the evolution of tokenization, from concept to allocation. Then, in 'Ask an Expert,' Kieran Mitha addresses investor questions about tokenized investments.
The tokenization landscape is shifting, with companies like BlackRock, Franklin Templeton, and Fidelity Investments launching real products on the blockchain. However, the real challenge lies in compliance, identity, transfer rules, sanctions, and lifecycle management.
The compliance question is an architecture question, with issuers needing to decide where to place compliance rules. For advisors, this decision directly affects how an asset behaves, determining its ability to move across chains and integrate with DeFi protocols. 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 and what they enable.
Credit risk is becoming more explicit, with emerging DeFi risk ratings frameworks introducing continuous, on-chain risk assessment. While some structural gaps remain, creators of tokenization frameworks are aware of these limitations and are working to address them.
As tokenization becomes more integrated into existing financial systems, it is likely to become a standard layer in global capital markets.