Real-World Asset Tokenization Gains Traction: Trust, Utility, and Regulation as Keys to Institutional Adoption

The tokenization of real-world assets (RWAs) is rapidly emerging as a pivotal development in the blockchain sector. Industry experts consistently highlight two fundamental drivers for institutional adoption: bolstering trust through regulatory clarity and delivering meaningful utility. These factors not only address inefficiencies in the traditional financial system but also lay the groundwork for broader acceptance of tokenized assets by sophisticated investors.

During the BTCON Seoul 2025 panel discussion, hosted by Digital Asset on September 5, industry leaders—including Jeremy Ng of OpenEden, Kaitai Zhang of Yala, and Connie from GAIB—shared insights on the future of RWAs and how their projects are navigating technical and regulatory challenges. The panel reinforced the burgeoning demand for tokenized solutions while stressing the importance of overcoming entrenched barriers.

Building Trust: The Critical Institutional On-Ramp

The central barrier for institutional investors engaging with RWAs is trust, which hinges on regulatory compliance and credibility. Jeremy Ng, CEO of OpenEden, explained, “Institutions prefer products issued by regulated or licensed entities because their own operations must comply with stringent regulations.” To address this, OpenEden’s tokenized U.S. Treasury fund recently secured a credit rating from Moody’s and is on the path to an AA+ rating from S&P. “The endorsement of trusted credit rating agencies instills confidence in institutions, making it easier for them to participate,” Ng noted.

This trust-driven approach extends beyond tokenizing existing assets. The panel discussed the necessity of offering innovative investment opportunities and improving market efficiency. Connie from GAIB emphasized the growing prominence of artificial intelligence (AI) technologies, citing hardware assets like GPUs as an untapped RWA category. "Investing in AI often boils down to buying stocks like Nvidia,” she explained. “By tokenizing assets like GPUs, we enable participation in AI infrastructure growth, effectively creating a new asset class.” Connie compared this to how gold underwent financialization decades ago, stressing the transformative potential of RWAs.

Kaitai Zhang of Yala also introduced a unique model blending RWAs with Bitcoin holdings. By issuing stablecoins (YU) backed by Bitcoin, Yala enables investors to earn returns tied to tokenized assets without selling their cryptocurrency. “This approach unlocks liquidity and generates revenue while preserving long-term Bitcoin positions,” Zhang said.

Adding to this ecosystem, OpenEden has developed a tangible use case in partnership with Binance. Ng explained how their tokenized Treasury Bills (TBILLs) can serve as collateral within Binance’s “off-exchange settlement solution,” addressing risks tied to counterparty failures. "Institutions can keep assets in their wallets for security, generate yields, and simultaneously use those holdings as margin for derivatives trading,” he shared. This integration exemplifies the practical utility RWAs can deliver to modern financial markets.

Challenges Hindering Adoption: Regulation and Scalability

Despite significant progress, the RWA market faces headwinds, with regulatory uncertainty remaining the most pressing concern. Kaitai Zhang highlighted limitations imposed by unclear regulatory frameworks, citing a private credit product with a $200 million cap that is restricted to a specific blockchain network. “Even the most prominent players face scalability challenges without definitive guidelines,” he remarked.

Another critical challenge lies in the diversity of tokenized asset models. Rania from Ondo Finance pointed out key differences between permissioned structures—such as Robinhood’s Special Purpose Vehicle (SPV) model—and permissionless, freely transferable approaches championed by platforms like Galaxy and Ondo. “Investors must thoroughly understand the rights, restrictions, and frameworks tied to each type of asset,” she emphasized, underlining the importance of transparency in the space.

The path forward, panelists agreed, involves not only regulatory clarity but also the creation of tokenized solutions that meaningfully enhance market efficiency. Kevin Lee of L2 Capital succinctly summarized the discussion: “RWAs are transitioning from theoretical concepts to concrete products that tackle real-world inefficiencies and broaden investment opportunities.”

The Road Ahead for Real-World Asset Tokenization

Real-world asset tokenization stands poised to revolutionize institutional finance by addressing long-standing inefficiencies and creating new opportunities for growth. However, the success of RWAs depends on earning stakeholders’ trust through regulatory compliance, improving market accessibility with innovative use cases, and providing clear, scalable operational models. As the blockchain industry collaborates with regulatory bodies and develops robust solutions, the RWA ecosystem will continue to evolve from niche innovation to a cornerstone of modern financial systems.

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