A recent survey by Brecken reveals that 69.2% of real-world asset (RWA) issuers are currently active, with 84.6% identifying regulatory obstacles as a significant challenge. The data indicates that issuers place greater importance on capital formation rather than immediate liquidity when tokenizing assets. Tokenization of RWAs involves converting traditional assets like real estate, bonds, and other investments into digital tokens using blockchain technology, aiming to enhance accessibility, transparency, and ease of trading. However, regulatory concerns and legal complexities have impacted the implementation of this process. Most issuers prefer to first secure capital and stabilize their assets, considering liquidity—the ability to convert assets into cash quickly—less critical. This trend could lead to greater asset stability and increased investment opportunities but regulatory challenges will persist. Tokenization of RWAs has the potential to broaden inclusion in the global financial system, especially for investors outside traditional frameworks. Successful adoption, however, depends on clearer and improved legal and regulatory policies. If regulatory barriers are reduced in the future, this trend may accelerate, creating new investment opportunities; conversely, stringent regulations and uncertainty could limit market growth.
Source: coindesk
