Don’t just tokenize assets, build the institutions to back them

The author argues that tokenizing real-world assets (RWAs) is not a complete solution on its own; it requires the development of strong, institution-grade frameworks to succeed. While critics point to complexity, lack of infrastructure, and regulatory hurdles, significant work is underway to establish compliant systems that can bridge the global financial divide, particularly in areas like treasuries and real estate. Key components like onchain KYC, AML, and institutional custody are being developed, with the next steps focusing on standardized compliance templates. Global regulatory clarity is emerging, evidenced by the US's GENIUS Act, the EU's MiCA regulation, and initiatives in Asia like Singapore's Project Guardian, signaling a shift toward legitimate, well-governed markets. The criticism faced by RWA tokenization has ironically driven the creation of necessary infrastructure and regulatory alignment, moving the sector past speculation toward tangible, mainstream adoption.

(Source：Cointelegraph)