A new report, Real World Assets: A Practitioner’s Guide, co-authored by Libeara, a Standard Chartered Ventures–backed tokenization platform, highlights how tokenized assets are rapidly gaining traction in global markets.
The report states that tokenization is more than digitization: it involves creating programmable, composable assets that can settle instantly on global blockchain rails.
Unlike traditional financial infrastructure, where assets are siloed across custodians and clearinghouses, tokenized assets exist as bearer instruments that can be transferred, swapped, or integrated into smart contracts in real-time.
This composability allows new functions such as atomic swaps between tokenized Treasuries and stablecoins, or the use of tokenized loans as collateral within decentralized finance (DeFi) systems.
From Bitcoin to Stablecoins to Tokenized Funds
Libeara traces the evolution of tokenization through three phases. The first began with Bitcoin, which introduced digital scarcity but was too volatile to serve as a mainstream financial instrument.
The second came with Ethereum’s smart contracts, which created programmable finance but initially relied on unstable crypto-native collateral.
The third, starting around 2020, combined stablecoins and real-world assets (RWAs), extending programmable finance into the realm of Treasuries, money market funds (MMFs), and private credit.
This progression has laid the groundwork for institutional adoption. Stablecoins proved the viability of tokenized money, and tokenized RWAs are now connecting capital markets to blockchain infrastructure, with growing participation from established financial firms.
Market Growth and Structural Drivers
While still small relative to traditional markets, tokenized funds are expanding quickly. Tokenized Treasuries represent only a few billion dollars in assets under management compared to the $20 trillion Treasury market, but their growth curve mirrors the early trajectory of exchange-traded funds (ETFs).
CoinShares notes that tokenized MMFs are scaling faster than ETFs did in their first decade, pointing to trillion-dollar potential in the years ahead.
The report identifies several factors driving adoption: the return of positive interest rates, the success of stablecoins, institutional experiments by firms such as Franklin Templeton and BlackRock, improvements in blockchain scalability, and clearer regulatory frameworks emerging in the U.S. and Asia. Together, these forces have made tokenization both technically feasible and commercially attractive.
Case Studies in Institutional Credibility
Examples from major asset managers underscore this momentum. Franklin Templeton’s OnChain U.S. Government Money Fund, launched in 2018, demonstrated regulated tokenized funds could operate across multiple public blockchains.
BlackRock’s 2024 launch of the BUIDL fund on Ethereum further validated the market, attracting half a billion dollars in assets within months. Fidelity, WisdomTree, and Janus Henderson have since launched their own tokenized Treasury products.
Global ratings agencies such as S&P and Moody’s are now rating tokenized funds, with some products receiving investment-grade classifications.
According to Libeara, this institutional credibility marks a turning point, suggesting tokenized funds are positioned to follow — and potentially exceed — the growth trajectory of ETFs.
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