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In this edition, Jason Barraza discusses the shift in discussions at TokenizeThis 2026 from whether to tokenize real-world assets to how to actually implement it, emphasizing the focus on practical utility rather than mere hype. He also points out the existing infrastructure challenges that need addressing to facilitate the next stage of institutional adoption.
In the “Ask an Expert” section, Joshua de Vos from CoinDesk Research responds to queries about tokenized investment products and prevailing market dynamics.
Happy reading.
Tokenization matured in 2026, now it must deliver
Key insights from TokenizeThis 2026, where discussions transitioned from the relevance of on-chain real-world assets to their actual usage.
Throughout the TokenizeThis 2026 conference, Bitcoin hovered around $60,000, but this did not seem to be a priority for the presenters. The narratives surrounding crypto and tokenization have diverged significantly. Tokenized real-world assets (RWAs) have surged past $30 billion, which is roughly six times the amount recorded at the beginning of 2025. During their keynote, the founders of RedStone referenced an EY and Coinbase Institutional survey revealing that 64% of asset managers are now interested in tokenization, a notable increase from 40% the previous year. The keynote emphasized that the debate over the demand for tokenization has been settled.
The change in sentiment is attributed to regulatory developments. The GENIUS Act has legitimized payment stablecoins, and speakers frequently highlighted the CLARITY Act, which is currently progressing through the Senate, as a potential major breakthrough. RedStone co-founder Marcin Kazmierczak stated that CLARITY could represent a 10x or even 100x advancement compared to GENIUS, as it enables a broader array of asset classes to be tokenized.
Initial traction: Cash and collateral lead the way
Tokenization is proving its worth primarily through collateral. On the repo panel, Robert Krugman from Broadridge mentioned that the company currently processes approximately $370 billion in tokenized repo transactions daily on the Canton network. While this represents just a fraction of the $12 trillion US repo market, it is a significant development, and the programmability aspect is straightforward.
"If you want to borrow for five minutes, you pay for five minutes [instead of a full day]. It's a no-brainer," remarked Ami Ben-David, CEO of Ownera.
Asset managers are prioritizing practical applications over novelty. A consistent theme was that tokenized products must provide tangible improvements over their traditional counterparts. Christine Moy from Apollo stated that their tokenized private credit fund has demonstrated the "superpowers" of on-chain assets: enhanced secondary liquidity for traditionally illiquid products and the ability to use private credit as collateral in decentralized finance (DeFi) platforms like Aave and Morpho.
Treasury departments are also adapting for similar reasons. Maredith Hannon from WisdomTree explained how a small construction firm in the US is able to pay an Argentine vendor through a tokenized money market fund, all via a familiar web interface. This eliminates the need for a separate bank account, while the treasurer earns yield during the transaction. Ryan Rugg from Citi emphasized that clients desire more than just a Citi token; they want access to multi-bank systems.
Identifying gaps in utility and minting
However, many issues remain unresolved. Distribution is a primary concern. Moy highlighted that the next generation of investors often began their journey with Bitcoin and digital collectibles rather than traditional blue-chip stocks, indicating that outreach must be tailored to their existing wallets. Maple has embraced this approach, facilitating loans on-chain using stablecoins.
Compliance is another challenge. Jasmine Jia from Fidelity recounted an incident where a manager faced issues when a client received a token via an airdrop, a seemingly minor event that nonetheless triggered compliance alarms and highlighted the need for modernization in compliance practices. The earlier-mentioned survey corroborated her point, with 49% of respondents identifying the integration of blockchain into conventional portfolio and risk management as their most significant readiness gap.
Additional Results from the EY and Coinbase Institutional Survey
Lastly, fragmentation and lack of interoperability pose significant hurdles. On the settlement panel, Raja Chakravorti from Stellar identified interoperability as the most crucial long-term solution, as assets confined to a single platform or blockchain face mobility issues. With numerous blockchains and differing definitions of finality, liquidity becomes increasingly scarce. Lauren Berta from Ripple pointed out that finality can vary across chains, and a trade regarded as settled might still be subject to reversal, which inhibits scalability. No one on the panel claimed to have resolved these issues yet.
The atmosphere at the Glasshouse was devoid of hype, reflecting an industry aware of both its assets and its shortcomings. The coming year will reveal whether the necessary foundational work has been accomplished. For further recordings of the conference sessions, please check the Tokenize This YouTube channel.
- Jason Barraza, director of institutional strategy, RedStone
Ask an Expert
Q. Tokenized equity trading volumes reached a record high in June. How significant is this figure?
June recorded $3.86 billion in on-chain tokenized equity trading volumes, marking a 145% increase from May. The primary driver was the SpaceX IPO, which generated $1.19 billion in tokenized SPCX across platforms like Backpack and xStocks.
It is crucial to note that a majority of this activity occurs through synthetic wrappers instead of issuer-sponsored structures, with a significant portion being perpetual futures rather than spot trading. The on-chain market capitalization of tokenized equities stands at $1.53 billion, a small fraction of the $1.5 trillion in total trading volume year-to-date. This data indicates a robust demand for on-chain equity exposure, though it has yet to translate into direct ownership.
Q. Not all tokenized equity products are identical. What is the key distinction to be aware of?
The fundamental question revolves around what the token actually signifies. In the most robust model, the token represents the share itself, allowing ownership, voting rights, and dividends to accompany it. In a synthetic wrapper, the investor holds a contractual claim against another entity, not the underlying share, which introduces counterparty risk, tracking risk, and the risk that corporate actions may not be executed correctly.
Two tokens bearing the same ticker symbol can represent vastly different instruments. The SEC's January 2026 staff statement explicitly highlighted this distinction. For advisors assessing these products, understanding the structure is critical, as it dictates the rights of the token holder.
Q. How developed is the regulatory framework currently?
The framework is more advanced than many realize, but gaps persist. Over the past eight months, the SEC has issued a no-action letter for DTC tokenization services, published a staff statement defining ownership taxonomy, and approved Nasdaq's proposal to trade tokenized securities alongside traditional shares. The DTCC completed its first live production transactions this month.
Despite these advancements, uncertainty remains. Tokenized equities are still largely limited to non-U.S. or accredited investors, the CLARITY Act has yet to be enacted, and third-party synthetic models face more legal ambiguity than issuer-sponsored structures. Progress is being made in a clear direction, but substantial work remains to enhance confidence and promote adoption.
- Joshua de Vos, head of research, CoinDesk
Keep Reading
- Clarity Act update: A new version of the Digital Asset Market Clarity Act is making the rounds as the U.S. Senate gears up for what could be its final major effort to pass the long-awaited market structure bill for the crypto industry.
- Russia's State Duma has approved its cryptocurrency regulation bill, which legalizes crypto for cross-border transactions while maintaining a ban on domestic payments, with the main provisions set to take effect on September 1 pending the president's signature.
- Japan has reclassified crypto as a financial asset, with lawmakers asserting that crypto has evolved beyond a payment method and now requires regulations tailored for investment products.
Looking for more? Stay updated with the latest crypto news from coindesk.com and market updates from coindesk.com/institutions.
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Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Market dynamics have shifted since June, but Binance has maintained its market share (~55% of user funds, ~24% of spot trading) and attracted net inflows in early July, while the overall tracked market experienced outflows.
By CoinDesk ResearchJul 22, 2026Market dynamics have shifted since June, but Binance has maintained its market share (~55% of user funds, ~24% of spot trading) and attracted net inflows in early July, while the overall tracked market experienced outflows.
Why it matters:
Market dynamics have shifted since June, but Binance has maintained its market share (~55% of user funds, ~24% of spot trading) and attracted net inflows in early July, while the overall tracked market experienced outflows.
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