“The total tokenized asset base remains rather insignificant. This rather disappointing picture on tokenization reflects traditional investors not seeing a need for it thus far.”
He further stated,
“There is also little evidence so far of banks or customers moving from traditional bank deposits to tokenized bank deposits on blockchains…”
Crypto holds the fort as TradFi steps back
For now, the bulk of RWA tokenization investment comes from within the crypto ecosystem, with venture capital firms and blockchain-native players keeping the market afloat.
Traditional finance’s enthusiasm appears to be cooling – BlackRock’s BUIDL fund alone saw a $0.6 billion drop in assets between May and August.
ETF analyst Eric Balchunas noted the contrast: while tokenized private credit accounts for $15 billion of the sector’s market cap, U.S. ETFs pull in an equivalent amount every week.
Source: X
He remains unconvinced that tokenization can rival the entrenched appeal of ETFs.
Regulators zero in on stablecoin risks
South Korea’s Financial Intelligence Unit has launched a year-long review into their anti-money laundering vulnerabilities. The project is backed by a 50-million-won budget and running through December 2025.
The study will examine domestic payments and cross-border transfers, areas where Korean law still lacks clear definitions for stablecoins.
By benchmarking its framework against global standards, the FIU aims to close legal gaps. This will bring tougher oversight ahead for the sector.
Next: Here’s why Dogecoin’s 30% weekly gain signals parabolic rally ahead
