Tokenization of Real-World Assets will Transform Our Economy

It’s not a question of if Trading assets will be digitised and traded on the blockchain - it’s a question of when and who will be the dominant players 

Jake Claver, QFOP | Managing Director - Digital Ascension Group wrote an excellent article on “How Tokenization of Real-World Assets Will Transform Our Economy” - below is a summary 

What is Blockchain Tokenisation 

Tokens don’t replace assets - they enable the value of those assets to be transferred  to others in an efficient and effective way  

Tokenisation is a new digital framework for handling real-world value. This isn’t about futuristic coins or NFTs—it's about turning everyday assets into something programmable and tradable, without needing an overhaul of how those assets are structured at their core.

The idea is simple but powerful: you take an existing financial asset—like a loan, a share of real estate, or a government bond—and create a digital version of it on a blockchain. 

Once that happens, that asset becomes easier to move, quicker to settle, and more accessible to a broader range of investors. It's not a new kind of value—it’s a new way of moving what’s already there.

Real world assets include

• Private credit - $1.5 trillion
• US treasuries. - $25 trillion
• Gold, oil etc - $37 trillion 
• Institutional funds - $100 trillion 
• Real estate - $326 trillion
• Public Equities - $120 trillion 
• Bonds - $140 trillion 
• Specialised Markets - carbon credits, art, luxury vehicles etc $1 trillion 
• Insurance and Money markets $16 trillion 
• Derivatives - $1.5 quadrillion 

Each of the above have a fraction of assets on the blockchain - it’s only a matter of time that trading assets on the blockchain will become ubiquitous 

Private Credit

• $1.5 trillion globally,
• $12 billion of that has been tokenized—less than 1%. 
• $1.2 billion traded daily 

• Running on EVM-compatible blockchains like Ethereum and Polygon, with some exploring Solana.
• Projects like Maple Finance, Centrifuge, Arch Lending, and Goldfinch are offering on-chain lending backed by digital collateral. 

US Treasuries: Safe, Stable, and Going Digital

• $25 trillion in size, with $600 billion trading daily. 
• Around $4 billion worth of Treasuries have been tokenized so far

• Ondo Finance is a standout in this space, offering tokenized Treasury products on EVM chains. 
• Franklin Templeton has gone a different route, opting to use Hyperledger. 
• Investors can instantly move into tokenized Treasuries, keeping yield and stability without leaving the ecosystem.

Tokenized Commodities: Gold, Oil, and Beyond

• $37 trillion -  The global commodities market
• $1 billion worth of commodities has been tokenized so far, concentrated in tokenized gold.
• Projects like PAX G on Ethereum and Cometec on XDC 
• Blockchains can handle complex contracts, like warehouse receipts, futures agreements, or physical delivery terms—features that go beyond simple spot trading.

Institutional Funds

• $100 trillion of Hedge funds, mutual funds, and other managed portfolios 
• only a few billion dollars’ worth have been tokenized on Layer 2 Ethereum solutions, while Arca and Franklin Templeton are experimenting on Hyperledger.
• Fractional ownership, more efficient reporting
• Regulatory clarity is the sticking point, but as those rules get defined, this is being resolved 

Real Estate - massive potential 

• $326 trillion, real estate is by far the largest asset class. 
• $3 billion of it has been tokenized so far. 
• there are title companies, escrow processes, banks, and regulatory frameworks that slow things down. Once sorted - will shorten transaction timelines and open up fractional investment to a broader audience.
• Platforms like RealT, HoneyBricks, and Red Swan are showing what’s possible. 
• SPV-based models with structures where the token represents a share in a holding company that owns the asset, rather than the property itself.

 

Public Equities

• $120 trillion - Global equity markets with daily trading volumes of about $500 billion. 
• $15 billion worth of equities have been tokenized in publicly visible ways.
• Private chains like R3 Corda and projects like the DTCC’s Project Ion are building out the infrastructure for real-time settlement of stocks , eliminating the T+1 settlement delay reducing risks and operational costs.

Bonds

• $140 trillion in outstanding issuance, they’re too big to ignore. 
• $15 billion worth has been tokenized 
• HSBC, UBS, and SDX are already using private blockchains like Corda and Hyperledger to create digital versions of these instruments.
• Because these networks allow for privacy between institutions while still providing blockchain settlement features, they’re likely to dominate in this space—especially for large issuances that require complex terms and confidentiality.

Specialized Markets

Some niche but meaningful markets are also being transformed through tokenization:

• Carbon Credits: Roughly 5% of the $2 billion market has already been tokenized. Platforms like Toucan Protocol and KlimaDAO are active here.
• Intellectual Property: With a $500 billion market size, IP rights are being tokenized by players like IPWE (on Hyperledger and Casper) and BitSong (music royalties on Cosmos).
• Luxury Vehicles: Only 0.08% of this $620 billion market has been tokenized, with early experiments from Curio Invest and CoinEarth.
• Collectibles & Art: These markets have slightly higher penetration, with platforms like Masterworks and Courtyard pushing fine art and collectibles onto chains like Ethereum and Polygon.

Stablecoins, Money Markets, and Insurance Are Laying the Groundwork

• Stablecoins: These now represent over $225 billion in circulation and are increasingly becoming the digital cash of blockchain networks.
• Money Markets: Franklin Templeton, Circle, and Arch are building tokenized versions, but so far it’s only $1.5 billion—barely a start in a $6.5 trillion sector.
• Insurance: Just $225 million tokenized so far in a market worth over $8 trillion, but the potential is enormous—especially for automating claims and accelerating payouts.

Derivatives

• between  $1 and $2 quadrillion in notional value. 
• $5 billion has been tokenized. 
• Tokenization could bring transparency to one of the most opaque corners of finance.
• Platforms like Injective and Synthetix are making early moves, and private solutions like Corda may end up dominating here too.

Which Blockchains Stand to Benefit the Most?

Here’s how things are shaping up in terms of who’s best positioned:

• XRP Ledger: Especially via its EVM sidechain and ties with Corda—great for settlement and institutional compatibility.
• Polygon (MATIC): A strong generalist across most asset types, especially due to its developer ecosystem.
• Stellar (XLM): Deep in Treasury tokenization, especially with Franklin Templeton’s work.
• Algorand (ALGO): Potential dark horse in IP rights and commodities.
• Avalanche (AVAX): Well-suited for private markets, especially with its subnet model.
• Hedera (HBAR): Playing well in carbon credits, stablecoins, and institutional tools.
• Provenance / Cosmos (HASH / ATOM):Focused on insurance and other permissioned-use cases.

The Big Picture

The shift to tokenized finance is happening. It’s not a question of if - but when and what platforms! 

Patforms are solving real problems for big, old markets that have never moved quickly before.

If you're trying to figure out where this is all headed, start by watching where the institutions are already placing their bets.

Your top 20% will give you 120% of your profit - your bottom 20% will lose the 20%

I’m sure you’re heard of the 80/20 rule where 20% of your products , services or people deliver 80% of your revenue, profit and results 

But there’s a less well-known paradigm which is the 20/120 rule which shows:

In terms of product 

• Your top 20% of products could be generating an impressive 120% of your profit.
• Your bottom 20% of products might be losing you 20% of that profit.

In terms of people 

• Your top 20% are your high performers who consistently overachieve. You’ll often find these people doing 120% of quota etc.
• Your middle 60% are somewhat mediocre. They have potential but may lack coaching, systems, or accountability.
• The bottom 20% often need to be retrained, repositioned, or exited. They might not be the right fit.

In other words, your weakest performers aren't just underperforming; they're actively costing you money and eating into your best results.

The success of a business is  not about the people - it’s about the right people 

Once you've identified the underperforming 20%, you have critical choices to make:

• For Products and Services: redesign, repackage, or bundle with successful offerings -or cut 

For Employees:  Is underperformance due to skills gaps or being in the wrong role. If they have the right attitude, targeted training or repositioning within the company can help them thrive. But if they're fundamentally unsuitable, cut!!!

Cut

Cutting may free up valuable resources, time, money, and headache enabling you to invest in areas that truly create a leaner, more efficient, and more profitable organization.

❓Are you measuring your performance to determine what or who  works or doesn’t ?

❓ Do you have KPIs that measure performance and hold people or products  accountable?  (including for yourself as the owner)

Thanks Rashid Kotwal for the insight http://www.revealedresources.com/