From marginal experiment to global market infrastructure: Tokenization is rewriting finance

Tokenization has crossed an irreversible threshold, evolving from a speculative experiment into a core component of global financial market infrastructure, as noted by figures like Larry Fink. The primary barrier to widespread adoption is no longer technological maturity but rather institutional perception, which remains clouded by past crypto excesses. Tokenization fundamentally changes the infrastructure for compliant transactions—improving settlement speed, operational efficiency, transparency, and programmability—without altering existing securities laws or investor eligibility. While fractional ownership is often highlighted, the real power lies in removing operational friction that made granular participation economically impractical. Emerging markets are adopting tokenization as a utility to overcome fragmented legacy systems, while Western institutions hesitate due to reputational risk, creating a competitive gap. Jurisdictions like Europe (via MiCA) and the Gulf are establishing regulatory clarity and controlled pilots, focusing on standardization and execution. Ultimately, the shift requires viewing tokenization as infrastructure modernization rather than speculative activity, with future success depending on governance and speed of deployment.

(Source：CryptoSlate)