Tokenization in Crypto: A New Era of Institutional Adoption

Tokenization in Crypto: A New Era of Institutional Adoption

At the recent TokenizeThis 2026 conference, discussions evolved from questioning whether real-world assets should be tokenized to the practical usage of such assets. This shift reflects a significant change in sentiment among asset managers who are now prioritizing real-world utility in the crypto space.

Tokenization Gains Momentum

Data showcased at the conference revealed that tokenized real-world assets (RWAs) have surged past $30 billion, marking a sixfold increase since the beginning of 2025. Founders of RedStone emphasized a survey from EY and Coinbase Institutional, which indicated that 64% of asset managers express a desire to engage in tokenization, a substantial rise from 40% the previous year.

Regulatory Developments Fuel Growth

The atmosphere at TokenizeThis has markedly changed due to regulatory advancements. Key legislation such as the GENIUS Act has legitimated payment stablecoins. Moreover, the anticipated passage of the CLARITY Act is seen as a major milestone, potentially transforming the asset class landscape significantly. RedStone co-founder Marcin Kazmierczak highlighted the importance of CLARITY, suggesting it could enhance access to multiple asset classes.

Tokenization in Action: Use Cases in Collateral and Cash Management

Asset managers are recognizing that the most immediate applications of tokenization lie in collateral management. Broadridge’s Robert Krugman noted his firm’s transaction volume of approximately $370 billion of tokenized repo trades daily, indicating a burgeoning niche in the $12 trillion U.S. repo market. On this front, the advantages of tokenization, particularly in liquidity management, are becoming clearer.

Ami Ben-David, CEO of Ownera, explained that tokenization offers flexibility to borrowers – highlighting that borrowing costs can be minimized to the actual time capital is utilized. Furthermore, firms like Apollo are showcasing tokenized products that provide secondary liquidity, facilitating movement in otherwise illiquid markets.

Addressing Challenges in Utility and Interoperability

Despite the positive momentum, experts pointed out several challenges that remain unaddressed. Issues surrounding distribution channels need to be resolved as new investors, usually starting with cryptocurrencies, require better access through their digital wallets. Compliance remains a substantial hurdle as illustrated by Fidelity’s Jasmine Jia, who shared experiences of compliance complications arising from unexpected token airdrops necessitating modernization of internal protocols.

Furthermore, interoperability is critical for the future of tokenization. Stellar’s Raja Chakravorti stressed that assets locked on a single blockchain hinder market efficiency, leading to lower liquidity.

Looking to the Future

The conversations at TokenizeThis 2026 suggest an industry at a pivotal point, having recognized both its accomplishments and shortcomings. As 2026 progresses, the industry’s focus will likely lean towards addressing the practical elements of tokenization in order to create a more robust framework for adoption.

To catch up with conference highlights and discussions, recordings are available on the Tokenize This YouTube channel.