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Developing Economies To Drive RWA Tokenization Train in 2026: Crypto Exec

Cointelegraph
A crypto executive predicts emerging markets will drive real-world asset tokenization growth starting in 2026 by leapfrogging legacy infrastructure.

Summary

Jesse Knutson, head of operations at Bitfinex, predicts that the tokenized real-world asset (RWA) market will accelerate in 2026, primarily driven by adoption in emerging market economies. These economies benefit from tokenization by overcoming friction in capital formation and attracting foreign investment, often by adopting digital rails like stablecoin settlement faster than developed markets with entrenched legacy systems. Tokenization also democratizes investment through fractionalization. While developed economies favor tokenizing fixed-income instruments like US Treasuries, developing economies focus on real estate and commodities. Knutson forecasts the RWA market capitalization could reach several trillion dollars within a decade, contingent on issuers moving beyond pilot programs to commercial products. Key challenges remain, including establishing legal enforceability for onchain contracts, ensuring sufficient liquidity, creating investor protection frameworks, and developing uniform interoperability standards across different blockchain networks.

(Source:Cointelegraph)