Tokenized Real-World Assets Need Crypto-Like Experience to Succeed

In 2018, the crypto industry was optimistic that all assets would soon be tokenized and live on blockchains. Real estate, art, and private equity were expected to follow, but the movement fizzled out due to cumbersome processes and lack of user interest, not regulatory hurdles.

Now, major players like BlackRock, Franklin Templeton, and JPMorgan are reviving the concept, with tokenized real-world assets (RWAs) on public chains exceeding $30 billion this year. However, the experience remains tedious, resembling private placements rather than accessible crypto products. A report from BeInCrypto found $32.9 billion in tokenized assets with zero weekly transfer activity, highlighting the market's stagnation.

The original crypto boom spread because of key properties: no permissions required, interoperability, and continuous market access. Today’s tokenized RWAs often lack these features, with whitelisted, high-minimum products that deter average users. Tokenized Treasuries stand out as the exception, behaving more like crypto assets with around $15 billion in reasonably liquid markets.

The main obstacle isn’t technology but unglamorous product work. Smaller denominations, easier distribution, and functional secondary markets are needed. Compliance concerns can be addressed by verifying wallets without restricting asset movement. The lesson from 2018 is clear: tokenization works, but the experience must feel like crypto for mainstream adoption.