Tokenization—the process of representing real-world assets (RWAs) such as real estate, commodities, and equities on a blockchain—is reshaping the foundations of capital markets. Yet, the path to large-scale deployment is still in its formative phase, with organisations facing several hurdles in translating promise into practice.

According to our survey respondents, the foremost barrier is limited investor education and demand (43%). This underscores a critical need for clearer narratives and outreach strategies to communicate the value proposition of tokenized assets, particularly in terms of liquidity, fractional ownership, and 24/7 market access. The lack of interoperability across blockchain platforms (36%) was also a significant challenge, reflecting persistent friction in an ecosystem that remains fragmented by competing protocols and technical standards.

As tokenization initiatives advance, industry collaboration is seen as essential to scaling adoption and reducing friction. A clear majority (57%) of participants believe that standardisation efforts for interoperability will be the most impactful in accelerating the uptake of tokenized RWAs. Common standards would allow assets to move more freely across platforms, facilitating greater efficiency, liquidity, and investor confidence. In parallel, 34% of respondents highlighted the importance of joint initiatives with regulators. Collaborative engagement with policymakers is vital to ensuring that tokenization projects operate within legally sound and scalable compliance frameworks—bridging the innovation gap between traditional financial institutions and digital-native platforms.

Despite the excitement surrounding tokenization, the forecasted impact on traditional capital markets over the next five years is expected to be evolutionary rather than revolutionary. A majority (57%) foresee gradual integration of tokenized RWAs alongside existing market structures, rather than disruptive displacement. This suggests that institutions anticipate a hybrid model, where tokenized assets coexist with legacy systems, enabling smoother transitions and reducing operational risk. However, a significant contingent still doubts transformative change in the near term, citing regulatory and technological constraints as persistent bottlenecks.

These insights point to a crucial balancing act for stakeholders: while tokenization offers immense potential to enhance liquidity, transparency, and operational efficiency, its successful deployment will depend on ecosystem-wide alignment. From investor readiness to regulatory clarity and technological coordination, the evolution of tokenized RWAs will require persistent effort, cross-sectoral dialogue, and iterative experimentation. The next phase of market development lies not only in refining the underlying infrastructure, but also in building the trust and frameworks necessary to support widespread institutional participation.