In this newsletter, Marcin Kazmierczak from Redstone explores the evolution of tokenization, highlighting the shift from concept to allocation and the key considerations for advisors. The growth of tokenized assets is evident in the launch of real products on the blockchain by companies like BlackRock, Franklin Templeton, and Fidelity Investments.
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, and the compliance question is revealed to be an architecture question. For advisors, this choice directly affects how an asset behaves and determines its ability to move across chains and integrate with DeFi protocols. Institutional capital is already moving on-chain, with deposits of tokenized real-world assets in DeFi lending protocols surpassing $840 million.
As investors allocate these assets, they are reflecting broader market trends, and credit risk is becoming explicit. For advisors, this reframes the role of tokenized assets, and they must consider how these assets behave under stress and what risks they entail. While some structural gaps remain, creators of tokenization frameworks are aware of these limitations, and solutions are being developed to address them. In the 'Ask an Expert' section, Kieran Mitha answers investor questions about tokenized investments, highlighting the need for interoperability, regulatory clarity, and efficiency for tokenization to become a standard layer in global capital markets.