Tokenised assets and the future of investment: real estate, equities and beyond

Asset tokenisation is rapidly transforming investment markets by converting physical and financial assets into blockchain-based digital tokens. This shift enables fractional ownership, boosts liquidity and opens traditionally illiquid markets to a broader base of investors. The concept is no longer theoretical: real estate is being fractionalised on platforms such as RealT whilst traditional players such as Franklin Templeton, JP Morgan and Société Générale have all launched tokenised offerings in bonds and equities. For investors, tokenisation offers three core appeals: lower barriers to entry, 24/7 trading and programmable asset ownership; for issuers, it promises cost savings and streamlined operations.

Asset tokenisation involves representing real-world assets (RWAs) such as property, stocks or bonds as tokens using blockchain technology and cryptography. These digital tokens are securely stored and traded on distributed ledgers, offering transparency, faster settlement and programmability. Two types of tokens dominate: utility tokens which provide access to a product or service and security tokens which represent actual ownership of assets and are subject to financial regulation. The World Economic Forum highlights tokenisation as a key pillar of the future financial ecosystem, forecasting the migration of traditional investments onto blockchain rails. Issuers benefit from easier capital raising, enhanced transparency and instant settlement. Investors, meanwhile, gain access to previously inaccessible assets with improved liquidity and verifiable ownership rights. In his recent annual letter to investors, Larry Fink, CEO of the world’s largest asset managers, wrote: “Every asset - can be tokenized.”

Source: Teamblockchain/readi.fi

Tokenisation, itself, is already being deployed in several sectors:

· real estate - platforms such as RealT enable fractional ownership of rental properties in the US, allowing global investors to earn rental income without owning the entire asset.

· bonds - Franklin Templeton has tokenised money market funds through its proprietary Benji platform, issuing BENJI tokens that are tradable across blockchain networks such as Ethereum and Stellar.

· funds - according to PwC, the asset management industry is estimated to be worth in excess of $171trillion by 2028. A range of mutual funds and private equity funds have already been tokenised, with many more expected to follow.

· equities - Société Générale has issued a euro-backed stablecoin on Ethereum to facilitate securities settlements - this approach reduces counterparty risk and shortens settlement cycles.

· banking infrastructure - JP Morgan’s Onyx has introduced a tokenised collateral network, facilitating instant settlements using tokenised MMFs. It has also piloted deposit tokens such as JPMD, further validating the transition of core banking services onto blockchain.

In addition, tokenisation offers a range of benefits because investors are able to gain exposure to real estate, equities or private funds with only a fraction of the capital traditionally required – historically, access to these types of asset classes had been restricted to high net worth or institutional investors. Smart contracts allow for automated dividend payments, typically making income payments monthly, if not weekly, compared to every six months previously. For example, tokenised money market funds (such as those on the Benji platform) offer intra-day yield payments and wallet-to-wallet transfers whereby increasing efficiency and transparency. Furthermore, voting rights and compliance checks can be automated and made more efficient, and, because blockchains are on-line, they function 24/7 so it becomes possible to trade 24/7 and enable global participation thus making investing more democratic. And with fewer intermediaries, transaction and custody costs fall dramatically. However, whilst momentum is growing, the regulatory outlook is still evolving. In the UK, the FCA treats security tokens as regulated investments, requiring compliance with existing securities laws. In the US, the SEC classifies many tokenised offerings as securities, whereby triggering rigorous disclosure and compliance requirements. Moreover, the GENIUS Act has the potential to reshape US tokenisation policy by strengthening the regulatory foundation for stablecoins and setting the stage for wider adoption of digital securities. Meanwhile, Singapore’s MAS remains progressive, supporting experimentation through initiatives such as Project Guardian and the UAE Securities & Commodities Authority (SCA) recently clarified that tokenised real world assets (RWAs) are not considered securities unless their underlying asset already qualifies as one. Thus, unlike some jurisdictions, the SCA is regulating the outcome and not the technology when it comes to digital assets.

Essentially, investor protection, transparency and auditability remain top priorities with projects that meet regulatory scrutiny (such as Franklin Templeton’s tokenised UCITS fund), serving as compliance benchmarks. How long it will take before compliance departments and indeed regulators begin to question why there are UCITS that can only trade once a day, make distributions two a year, and be priced by the same company that, itself, manages the UCIT when it is possible to have the same UCITS that can be bought and sold 24/7 income, be distributed monthly/weekly, and the price be determined by independent market makers. Notably, Ethereum remains the dominant smart contract platform for tokenisation pilots, however, other blockchains are gaining traction. The Hashnote money market fund, which was acquired by Circle in January 2025, is on the Swiss-based Canton blockchain, Avalanche, and Polygon offers high-throughput and low-cost alternatives, and have been adopted by Franklin Templeton’s (tokenised money market fund) i.e. BENJI tokens Stellar, Arbitrum, Solana and Base are also supporting live assets whereby demonstrating the flexibility of tokenised offerings across ecosystems. Meanwhile, ecosystem players such as Circle and Coinbase provide on-ramps, custody solutions and liquidity infrastructure, so enabling the growth of tokenised markets. Yet, despite the promise, tokenisation faces several barriers:

· custody and wallet risks - users must manage cryptographic keys, raising concerns about security and usability.

· limited awareness - outside of crypto-native communities, understanding and demand remain low.

· regulatory fragmentation - global standards are still lacking, making cross-border issuance complex.

· technological maturity - integration with legacy financial systems is ongoing; blockchain scalability, interoperability and compliance tooling need continued improvement.

But, irrespective of this, tokenised assets could unlock trillions in untapped value, therefore improving access, liquidity and efficiency across markets. Industry forecasts, including those from Standard Chartered and Synpulse, estimate tokenised asset markets could reach around US$30 trillion by 2034. However, widespread adoption depends on three core pillars: trust in blockchain technology, regulatory clarity and an intuitive user experience. And, uncannily similar to the rise of ETFs two decades ago, tokenisation could redefine investment infrastructure for the digital age, enabling a seamless bridge between traditional and decentralised finance. So, for investors, issuers and regulators alike, the opportunity is not simply about creating digital versions of existing assets but is about transforming how the financial system operates at its core.