Tokenization of Real-World Assets: From Slim Returns to the Long Road of DeFi Ecosystem Integration

【Blockchain Rhythms】Will the tokenization of real-world assets immediately bring explosive growth to the crypto market? Probably not. But if these assets can be better integrated with blockchain networks, their potential will gradually be unlocked.

Public chains like Ethereum initially yield modest returns, but as the accessibility, interoperability, and composability of tokenized assets improve, the network’s value will also rise accordingly. In the early stages, transaction fee income is the main driving force, and as trading volume increases, the blockchains hosting these assets can also derive increasingly strong network effects from storage demands.

However, the true tipping point lies in the deep integration of tokenized assets with the DeFi ecosystem. Imagine real-world assets becoming collateral, lendable assets, or trading objects on decentralized lending platforms—that would indeed change the game. But achieving this requires waiting for technological breakthroughs, infrastructure improvements, and mature regulatory frameworks. This is not a matter of one or two years.

Where are the challenges? Building tokenized assets with genuine composability and interoperability is no easy task. These assets vary greatly in form and function, scattered across both public and private blockchain networks. Take Canton Network as an example: this private chain currently hosts tokenized assets worth $380 billion, accounting for 91% of the total tokenized real-world assets. In comparison, Ethereum, the most mainstream public chain, has only deployed $121 billion worth of such assets.

Even within open networks like Ethereum, there are significant differences in the design of tokenized assets. Most of these assets are essentially securities, still requiring certification through traditional financial intermediaries, KYC verification, qualified investor screening, whitelist wallet management, and other steps. This means that the collision between technological innovation and traditional financial rules will continue.

However, businesses are already realizing tangible benefits through blockchain: near-instant settlement, 24/7 continuous operation, programmable ownership transfer, full transparency, auditability, and more efficient collateral management. Although these improvements may seem like technical details, they are actually rewriting the underlying logic of financial operations.