What if anyone, anywhere, could invest in U.S. Treasuries or gold with just a few clicks?
That’s the promise of RWA tokenization – a shift that panelists at CoinferenceX said is already breaking financial barriers and opening up global markets.
“Tokenization is not only about making things decentralized or solely owned by users. It is about making things easier to access for the public,” said Ved Singh, Co-Founder of Kaanch Network.
At the April 28 event in Dubai, the conference featured a panel titled: RWA – Tokenizing Real S#!T or just more digital hype? where Singh and fellow experts explored how RWA tokenization could democratize access to traditionally hard-to-reach markets, such as U.S. stocks, for investors around the world.
Expanding on the accessibility benefits, Singh noted: “Tokenization makes it easy for people to invest in traditionally illiquid assets, removing delays and heavy compliance barriers.”
Cheong echoed this view, highlighting architectural advantages. Joshua Cheong, Head of Product at Mantle Network, also highlighted how tokenization offers more advantages than traditional systems, especially from an architectural perspective.
He noted how it supports quicker settlements, creates liquidity through secondary markets, and works smoothly across different countries using blockchain technology.
Katie Evans, CBDO at Swarm, additionally said the company is already tokenizing diverse assets including U.S. Treasury, S&P 500 stocks (Strategy, Nvidia, and Microsoft), as well as gold.
Where tokenization is taking off globally
Panelists pointed to growing international momentum, with regulators in key markets laying the groundwork for tokenized asset ecosystems.
“Hong Kong and Switzerland are working on good frameworks for RWA. In 2020, Switzerland had already tested their DLT-based initiatives that aimed to facilitate the creation and trading of ledger-based securities,” said Singh.
“The Department of Land in UAE also allowed a private program for a company to tokenize real world assets,” said Amit Arora, Head of Partnerships at RAK Digital Assets Oasis.
Arora said the goal isn’t just to build a new financial system – it’s to create the infrastructure that delivers opportunities to everyone.
“We’re seeing GDP growth at a really good speed, with 600 plus builders coming to us and asking for blockchain solutions,” he said.
Why regulation still holds tokenization back
As regulation remains a global challenge, panelists shed light on how different jurisdictions are approaching real-world asset tokenization.
Despite the existing regulations that can cover tokenized assets, “there is currently no regulation anywhere in the world that makes provision for trading assets.” In the European Securities and Markets Authority (ESMA), you have to put up 1,250% margin against your position,” said Evans, referring to overcollateralization requirements that make tokenized trading economically impractical under current rules.
Cheong also said current regulations make tokenization economically challenging. “Jurisdictions are competing, and state actors are looking for new distribution partners, which will eventually drive regulatory changes.”
On the other hand, Arora was optimistic about proactive regulatory environments that support blockchain development. “In the UAE, regulators are chasing innovation, working hand in hand with technological initiatives,” he said.
In an interview with The Crypto Radio, Evans discussed how asset classification must be clarified, issuance methods distinguished, and both regulators and industry players must collaborate to deepen mutual understanding of tokenization practices.
As Evans put it, “There is a need for regulators to educate themselves… but there’s also an onus on the players.” For those pushing tokenization forward, the work is only just beginning.
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