Real-world asset (RWA) tokenization is transitioning from experimental pilots to live production systems, but the path forward depends far less on blockchain innovation than on solving traditional finance problems like distribution, liquidity, and enterprise-grade custody. According to industry builders from platforms like Presto, Libeara, Securitize, and R25, the central challenge is not making assets work onchain, but making them work across both blockchain and regulated securities markets without sacrificing investor protections or operational simplicity.

What's Actually Driving Demand for Tokenized Assets?

The momentum behind RWA tokenization is not coming from abstract blockchain enthusiasm. Instead, it is being pulled by a concrete shift in how institutions and users hold value. As stablecoins (cryptocurrency tokens pegged to the US dollar or other stable currencies) gain adoption among businesses and institutions, those users need ways to generate returns on their holdings without constantly moving money back into traditional banking rails. This creates demand for tokenized money market funds, Treasury bills, credit products, and other yield-bearing assets that can sit closer to stablecoin liquidity and be used directly onchain.

"People will want to manage stablecoin wealth in stablecoins without necessarily having to off-ramp everything that they get to generate returns from the holdings," explained Aaron Gwak, Founder and CEO of Libeara.

Aaron Gwak, Founder and CEO, Libeara

Treasury products and money market-style instruments currently lead the market, especially among longer-term holders seeking lower-volatility yield. However, the asset mix is expanding to include private credit, trade finance, corporate bonds, tokenized equities, and pre-IPO exposure. The next phase of RWA growth will likely involve a broader credit curve rather than one dominant asset class.

Why Does Tokenization Need a Purpose After Launch?

One of the most critical insights from industry leaders is that putting an asset onchain does not automatically create value. The panel repeatedly emphasized a production question that separates successful tokenized products from failed experiments: what can investors actually do with the tokenized asset after it exists? Without clear utility, tokenization risks becoming a new wrapper around an old product that offers no real benefit to users.

Utility can come through multiple channels. Secondary markets allow investors to trade tokenized assets more easily, converting them into cash or cash equivalents faster than traditional settlement processes. Collateral use enables investors to borrow against tokenized holdings. DeFi integrations let assets interact with decentralized finance protocols. Easier distribution expands access to new investor classes. Improved access removes geographic or minimum-ticket barriers. Without at least one of these utility pathways, a tokenized asset lacks the reason for institutional or retail investors to adopt it.

"What's the point of putting stuff onchain if we don't do anything with it?" asked Gabriel Gareth Foo, DeFi Growth Lead at Securitize.

Gabriel Gareth Foo, DeFi Growth Lead, Securitize

How to Build RWA Infrastructure That Institutions Will Actually Use

• Enterprise-Grade Custody and Key Management: Institutions cannot rely on raw private keys or ad hoc wallet processes when real capital, internal approvals, and compliance obligations are involved. RWA products must support enterprise-grade key management, policy controls, role-based approvals, and standardized custody workflows that align with how traditional finance operates.
• Reliable Pricing and Proof of Reserves: Tokenized assets need trustworthy information about the underlying asset, including oracle feeds, net asset value (NAV) reporting, proof of reserves, and offchain data verification. This becomes especially important when the asset is not natively onchain and investors need confidence that the token accurately reflects the value, composition, and status of the underlying instrument.
• Secondary Market Infrastructure: Trading venues are a critical part of making tokenized assets useful. If an asset can be traded and converted into cash or cash equivalents more easily, it becomes more attractive as collateral and more efficient as a financial instrument. Secondary liquidity can turn tokenized assets from static holdings into assets that can support broader onchain financial activity.
• Standardized Interfaces and Workflows: Production infrastructure has to support institutional operating requirements, not fragmented Web3 workflows. Enterprises, asset managers, allocators, and regulated institutions need standardized interfaces that integrate with their existing systems and compliance processes.

"You can't have a CFO of an enterprise run around with a private key and make sure it's secure," stated Sean Chung, VP Global Business Development at R25.

Sean Chung, VP Global Business Development, R25

Why Distribution and Liquidity Matter More Than Technology

The speakers were emphatic that technology alone will not define the winners in RWA tokenization. Distribution, issuer reputation, market access, regulatory clarity, and liquidity will matter heavily. A technically sound tokenized product still needs demand, trusted partners, market venues, and clear pathways for investors to enter, exit, trade, or use the asset. Without these elements, even the most sophisticated blockchain infrastructure will fail to gain adoption.

"Distribution is everything," emphasized Sean Chung.

Sean Chung, VP Global Business Development, R25

This insight reflects a broader reality in RWA tokenization: traditional intermediaries like banks, custodians, asset managers, transfer agents, and market makers already control many existing user relationships and distribution channels. Crypto-native firms often bring the technology and operating expertise needed to bring assets onchain. RWA adoption will depend on collaboration between both sides, not on one ecosystem replacing the other.

Can Tokenization Really Improve Access to Assets?

Tokenization is often promoted as a tool to improve access to assets that were previously difficult for some investors to reach. However, the panel also discussed the limits of that promise. Products still require licensed brokers, qualified investor status, large minimum tickets, or jurisdiction-specific access restrictions. The technology can expand access, but regulation, distribution, and product structure ultimately determine how much access actually changes.

"Tokenization in theory should be a technology that improves accessibility," noted Peter Chung, Head of Research at Presto.

Peter Chung, Head of Research, Presto

Tokenized regulated assets still need to respect securities law, investor eligibility, and legal ownership frameworks. Better technology does not remove the need to protect investors or comply with market rules. This tension between broader access and regulatory constraints will shape the pace and scope of RWA adoption for years to come.

The transition from proof of concept to production is well underway, but success will depend on solving problems that have nothing to do with blockchain. Institutions need custody solutions, liquidity venues, distribution partners, and clear regulatory pathways. The builders who understand this and focus on institutional workflows rather than pure technology innovation are the ones most likely to shape the future of tokenized assets.