Tokenizing Real‑World Assets: From Experiments to Mainstream Finance

A freight train of innovation

The promise of converting tangible assets into digital tokens has captured the imagination of financial markets. What began as small pilots in crypto‑native communities is now drawing the attention of regulators, banks and asset managers. According to Katten, the tokenization market reached roughly $24 billion in 2025 after expanding 308 percent in only three years. Analysts project that tokenized assets could reach $30 trillion by 2034, a figure that would rival entire national stock markets. InvestorPlace notes that up to $16 trillion in real‑world assets may migrate on‑chain by 2030. Robinhood’s CEO describes tokenization as a “freight train” that will “eat the entire financial system,” arguing that global markets will adopt tokenization frameworks within five years. These forecasts may sound bold, yet they are backed by tangible progress. This article explores why institutional interest is surging, which use cases are gaining traction and how you can prepare your organization for an on‑chain future.

Evidence of mainstream adoption

The shift isn’t theoretical. BlackRock and Franklin Templeton have already launched tokenized funds that hold U.S. Treasuries, enabling investors to trade fractional shares around the clock. Robinhood has listed more than 200 tokenized U.S. stocks on its European platform. A national trading system integrated with the U.S. National Market System now supports tokenized equities, allowing 24/7 settlement and broader investor access. An investment bank recently introduced a tokenized private equity fund, with plans to extend the model to real estate, hedge funds and credit portfolios. PaymentJournal highlights that leading banks are experimenting with tokenized deposits, which could allow real‑time settlement within existing regulatory frameworks. Combined, these developments show that tokenization is no longer confined to experimental crypto projects; it is becoming a legitimate infrastructure layer for financial markets.

Why tokenization matters

Converting real‑world assets into digital tokens offers several advantages:

• Liquidity: tokenized assets can be traded in smaller units and outside traditional market hours, opening opportunities to a wider pool of investors.
• Efficiency: settlement can occur in minutes rather than days, reducing counterparty risk and freeing up capital. RSM reports that integration with the National Market System enables 24/7 trading and faster clearing.
• Transparency: blockchain’s public ledger provides immutable records and can simplify auditing and compliance.
• Innovation: programmable assets allow for automated interest payments, revenue sharing or conditional transfers via smart contracts. New regulatory frameworks, such as the GENIUS and CLARITY acts in the United States, provide clearer guidelines for compliant tokenization.

Despite these benefits, tokenization is not a panacea. Legal uncertainty persists in some jurisdictions, and security vulnerabilities in smart contracts have led to high‑profile exploits. After a series of hacks in 2025, investors became more conscious of auditing and formal verification. Platforms must implement thorough code reviews and testing to prevent losses. Lightrains’ smart contract development services emphasize rigorous security audits and formal verification to mitigate these risks.

Case studies and lessons

Recent developments illustrate how tokenization can reshape finance. A major brokerage’s launch of tokenized stocks in Europe allowed retail investors to buy fractional shares of U.S. companies around the clock. The product attracted significant trading volume, demonstrating pent‑up demand for seamless cross‑border access. Meanwhile, a global asset manager tokenized a private equity fund, enabling near‑instant settlement and lowering operational costs. RSM notes that the integration of a tokenized trading system with national markets accelerates settlement and broadens participation. On the regulatory side, new acts give legal clarity by defining digital asset securities and establishing consumer protections. As you evaluate tokenization, consider your own use cases. Do you manage illiquid assets that could benefit from fractional ownership? Are your investors demanding faster settlement? Are there compliance hurdles that automation could ease?

Preparing your organization

Tokenization touches technology, compliance and user experience. Start by reviewing which asset classes in your portfolio could gain from fractional trading or improved liquidity. Engage legal counsel early to understand the regulatory landscape and licensing requirements in your jurisdiction. When designing smart contracts, prioritize security: use well‑tested standards, perform code audits and plan for upgradability. You will also need to integrate tokenized systems with existing infrastructure, from custodial platforms to accounting systems. Our blockchain consulting and product development services help organizations plan, build and maintain tokenized solutions, whether you are issuing a stablecoin or tokenizing supply‑chain assets. Reach out to discuss pilot programs or to explore how tokenization can unlock new revenue streams for your business.

This article originally appeared on lightrains.com