What happened?
A new Libeara report says tokenized real-world assets are moving quickly from theory to practice, becoming programmable, composable instruments that can settle instantly on blockchain rails. The paper traces the shift from Bitcoin to smart-contracts to stablecoins plus RWAs, and highlights institutional moves like Franklin Templeton and BlackRock launching tokenized funds. While still small versus traditional markets, tokenized Treasuries and money market funds are growing fast and show the potential to scale dramatically.
Who does this affect?
Asset managers, banks, and custodians are being pushed to rethink product design, custody and settlement as tokenized products enter mainstream offerings. Investors in Treasuries, money market funds, private credit and stablecoins will see new ways to access liquidity, use tokenized assets as collateral, and trade in real time. Blockchain infrastructure providers, DeFi platforms and stablecoin issuers will face rising demand and more integration with traditional capital markets.
Why does this matter?
Tokenization can materially change market plumbing by cutting settlement times, lowering frictions, and enabling atomic swaps and composable finance, which boosts liquidity and trading efficiency. If tokenized funds grow on a path similar to ETFs, substantial capital could migrate onto blockchain rails, pressuring legacy intermediaries and reshaping fees, custody and distribution models. With clearer regulation and growing institutional credibility, expect faster product innovation, cross-border flows and competitive pressure that could accelerate market structure change.