Tokenised assets market grows to $19.5B amid infrastructure gaps

The tokenisation of real-world assets (RWAs) is expanding rapidly, with the market value reaching $19.5 billion, excluding stablecoins.

However, Aaron Kaplan, co-CEO of Prometheum, argues that regulatory hurdles are not the primary barrier to broader adoption.

Instead, the lack of robust secondary markets for trading tokenised securities remains a significant challenge.

In an interview, Kaplan pointed out that frameworks like the SEC’s special purpose broker-dealer and Alternative Trading System (ATS) licensing already provide regulated pathways for blockchain-native asset issuance.

“Contrary to popular belief, the hurdle isn’t ambiguous regulation,” he stated.

The real issue lies in delivering accessible trading platforms for institutional and retail investors.

Currently, tokenised RWAs are limited to a few blockchains without fully public secondary markets akin to traditional exchanges like Nasdaq.

Kaplan identified two potential approaches for addressing this gap: using decentralised finance (DeFi) frameworks or integrating tokenisation protocols into existing brokerage platforms compliant with federal securities laws.

The demand for tokenised assets spans various sectors, including private credit and U.S. Treasury debt.

Real estate has also emerged as a key area, with luxury and commercial properties being tokenised across North America.

According to Boston Consulting Group, tokenisation could generate $100 billion in annual investor returns while boosting financial institutions' revenues.

Despite its potential, the industry faces competition between crypto platforms and traditional brokerages.

Many legacy financial institutions are investing in tokenisation initiatives to retain market share.

“What’s at stake is the next wave of users onboarding into the digital asset space,” Kaplan noted.

Prometheum aims to bridge this gap by developing a digital asset securities marketplace offering reduced fees and faster settlements.

Kaplan emphasised that investors increasingly seek “digital-native versions of all assets” within a single ecosystem.

Experts predict that tokenisation will transform financial markets by improving collateral mobility and capital efficiency.

The World Economic Forum estimates that 10% of the $230 trillion global securities market could benefit from tokenisation, unlocking liquidity and optimising settlement processes.