The concept of tokenization has been gaining momentum, with companies like BlackRock, Franklin Templeton, and Fidelity Investments launching blockchain-based products. This shift is not just about new technology, but about how these assets fit into portfolios and what they enable.
The real challenge lies in compliance, identity, transfer rules, sanctions, and lifecycle management. For advisors, the key is understanding how these assets behave, including their ability to move across chains, integrate with DeFi protocols, and serve as collateral in lending strategies. Institutional capital is already moving on-chain, with deposits of tokenized real-world assets in DeFi lending protocols surpassing $840 million. As tokenized assets become more mainstream, they are not just wrappers around existing products, but productive collateral capable of generating additional yield.
However, structural gaps remain, and until these are addressed, tokenization will continue to scale unevenly. Regulatory clarity and interoperability between blockchains, custodians, and traditional market infrastructure are crucial for tokenization to become a standard layer in global capital markets.