Tokenization is poised to revolutionize the financial landscape at an unprecedented pace, outpacing even the digital transformation of media. According to Keith Grossman, president of MoonPay, this shift will compel traditional financial institutions to adapt swiftly. Just as the media industry evolved with digitization, the financial sector is on the brink of a similar transformation.
“While many feared digitization would destroy media, it actually forced its evolution,” Grossman explained. In the same vein, real-world asset (RWA) tokenization, which involves representing traditional assets on the blockchain, will necessitate significant adaptation from existing financial institutions.
How Tokenization is Transforming Finance
This transformation is not merely theoretical. Major players like BlackRock and Franklin Templeton are already offering tokenized funds and money market funds on public blockchains. Global banks are experimenting with on-chain settlements, tokenized deposits, and real-time asset movement.
Financial giants such as Citi, Bank of America, and JPMorgan Chase are expected to continue operating but in altered forms. Much like media companies that thrived post-digitization, financial incumbents must embrace this change to survive.
Benefits of Tokenized Assets
The shift towards tokenized finance brings numerous advantages. It enables 24/7 market access, globalizes asset classes, reduces transaction costs through disintermediation, and accelerates settlement times from days to mere minutes.
In a significant move, the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) recently issued a joint statement advocating for a regulatory framework that supports 24/7 capital markets. This marks a substantial departure from traditional markets that close during nights, weekends, and holidays.
The Depository Trust and Clearing Corporation (DTCC), which processed a staggering $3.7 quadrillion in settlement volume in 2024, has received SEC approval to offer tokenized financial instruments. The DTCC plans to initiate tokenized assets, starting with US Treasuries and stock indexes, by the second half of 2026.
Ultimately, the winners in this evolving financial landscape will be those companies that proactively embrace blockchain technology rather than resist this inevitable shift toward a global financial system powered by blockchain rails.
