In a recent discussion, Keith Grossman, the president of the crypto payments company MoonPay, expressed a strong belief that tokenization will revolutionize the financial industry at an unparalleled pace compared to the impact digital technology had on legacy media sectors such as print newspapers and physical music formats. His comments highlight a growing confidence among blockchain advocates that the tokenization of real-world assets (RWA)—the representation of traditional financial instruments on public blockchains—is already altering the global financial landscape.
Grossman noted that, contrary to fears of digitalization dismantling the media industry, it instead compelled its evolution. He emphasized that tokenization will similarly push traditional institutions to adapt rather than resist these changes. Citing examples, he remarked, “This is no longer hypothetical,” referencing that major firms like BlackRock and Franklin Templeton are now offering tokenized funds and managing tokenized money market funds on public blockchains. He highlighted that significant global banks, including Citi, Bank of America, and JPMorgan Chase, are initiating projects related to on-chain settlement, tokenized deposits, and real-time asset movement.
The RWA sector, excluding stablecoins, boasts a substantial market capitalization nearing $19 billion, as per sources like RWA.XYZ. Established financial institutions are preparing to operate in an evolved medium, analogous to how media companies transitioned to digital platforms during the late 1990s and early 2000s. Grossman reiterated that the key to thriving in a tokenized finance landscape lies in adapting to these changes rather than opposing them.
Tokenization offers numerous advantages, such as 24/7 access to global markets, a broad spectrum of exchanges, and significantly reduced transaction costs due to a decrease in intermediaries. Additionally, it enables settlement times to shrink from days to mere minutes, thereby enhancing capital efficiency and reducing counterparty risks for institutional investors.
Regulatory frameworks are gradually evolving to support this shift. Recently, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement endorsing the development of a 24/7 capital market regulatory environment. Still, the path to success for tokenized finance involves navigating intricate legal frameworks and ensuring rigorous cybersecurity measures to safeguard assets and achieve compliance with international securities laws.
Most of the current value in tokenized RWAs resides on the Ethereum blockchain. This transition to round-the-clock trading contrasts sharply with conventional markets that typically close on weekends, holidays, and overnight. The Depository Trust and Clearing Corporation (DTCC), which managed approximately $3.7 quadrillion in settlements in 2024, has gained SEC approval to offer tokenized financial instruments and is expected to initiate trading in tokenized assets, including U.S. Treasuries and stock indexes, in late 2026.
Overall, tokenization holds the potential to create a more efficient, transparent, and inclusive financial system. Institutions that adapt early to these transformative changes may find themselves with a significant competitive edge, while those resistant to blockchain innovation risk being left behind.
