Major financial institutions are actively engaging in the pioneering efforts of tokenizing real-world assets, a move that is poised to revolutionize financial markets at a pace potentially more rapid than what digital technology achieved in transforming legacy media formats. This perspective comes from Keith Grossman, president of the crypto payments firm MoonPay, who highlights the significance of the shift toward on-chain representation of traditional assets, prompting necessary adaptations within the banking sector.
Prominent players in finance, including BlackRock, Franklin Templeton, Citi, Bank of America, and JPMorgan Chase, are testing a variety of tokenized products. BlackRock has introduced tokenized funds, while Franklin Templeton is exploring tokenized money market funds on public blockchains. Additionally, global banks are experimenting with on-chain settlement methods, tokenized deposits, and innovative systems for real-time asset movements.
As of now, the market capitalization for the real-world asset (RWA) sector—excluding stablecoins—has neared $19 billion. Grossman draws a parallel between the current transition toward tokenization and the challenges faced by media companies in the late 1990s and early 2000s, suggesting that financial incumbents are likely to evolve rather than be eliminated by this shift. Firms that do not embrace blockchain-based infrastructure are at risk of falling behind as competitors leverage innovation to gain an edge.
According to Grossman, the companies that will navigate this transformational phase successfully will be the ones that adopt early, positioning themselves favorably against the pressures of the market. He warns that those who resist the momentum toward blockchain-powered financial systems may miss out on significant opportunities. The anticipated speed and breadth of change could potentially surpass current expectations, resembling the swift disruption seen in the media industry.
Tokenization of real-world assets offers numerous advantages, including round-the-clock market access, an expanded array of asset classes on a global scale, lower transaction costs achieved through disintermediation, and dramatically reduced settlement times—from days down to mere minutes. The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly recognized the need for regulatory frameworks supporting continuous capital markets.
The transition to around-the-clock trading marks a stark contrast to traditional markets, which typically observe closures during evenings, weekends, and holidays. In December, the Depository Trust and Clearing Corporation (DTCC), which handled an impressive settlement volume of approximately $3.7 quadrillion in 2024, received SEC approval to introduce tokenized financial instruments. The DTCC has set plans in motion to launch these tokenized assets in the latter half of 2026, with an initial focus on U.S. Treasuries and stock indices.
Ethereum has become the dominant platform for hosting tokenized real-world asset value, serving as the primary infrastructure for institutions venturing into on-chain financial products. Grossman’s insights suggest that as regulatory clarity increases and major institutions finalize their pilot programs, the momentum for adoption will significantly accelerate, ushering in a new era for financial markets.
