NYDIG: Tokenized real‑world assets will matter — but the gains will arrive slowly unless markets and rules change

NYDIG’s measured claim and what markets immediately took from it

When NYDIG’s Greg Cipolaro stepped into the conversation this week, his message was straightforward: tokenizing real‑world assets has clear long‑term benefits, but the early wins will be small. The market reaction reflected that caution — interest rose, pilot projects gained headlines, but trading and liquidity barely budged. For investors and crypto‑finance pros the headline is practical: tokenization is promising, not revolutionary today. It will create real change only if rules, custody and trading plumbing evolve to make tokenized assets easy, safe and genuinely tradable.

What tokenized RWAs mean for markets today — how the pieces fit

Tokenized real‑world assets, or RWAs, are simple in idea: take a claim on something off the books — a bond, a loan, a property interest — and represent that claim as a token on a blockchain. That token can move cheaply and instantly between wallets, and it can be plugged into decentralized finance tools like lending pools or automated market makers.

But real markets don’t exist only on blockchains. They run on legal contracts, custody rules, settlement systems and regulators. For tokenized RWAs to matter, three things must work together: a legal wrapper that makes on‑chain tokens legally enforceable; custody that satisfies banks, asset managers and regulators; and trading venues or rails that let people buy and sell without enormous friction.

Right now most tokenized assets live in pilot projects or tightly controlled platforms. They are useful for showing what could happen, but they don’t yet move large pools of institutional capital or replace existing market plumbing.

Inside NYDIG’s take: regulation, democratization and the timing of benefits

Cipolaro’s point was part strategic and part practical. Strategically, NYDIG likes the idea that tokenization can democratize access — letting smaller investors get exposure to asset classes once reserved for institutions. Practically, he warned that the most attractive outcomes require regulators and market intermediaries to change how they think about ownership and settlement.

He stressed that regulators must evolve, not necessarily rewrite every rule. For example, authorities need to accept new record‑keeping models and clarify how securities laws apply to tokenized interests. NYDIG also framed tokenization as incremental: some efficiencies will show up in custody and settlement first, while broad retail access and deep DeFi integration could take years.

The tone was measured: this is an infrastructure and policy story as much as it is a technology one. NYDIG expects benefits to grow over time, but only if democratizing visions are matched by safe, compliant execution.

Investor implications — liquidity, tradability and where returns could appear (or not)

For investors, the core questions are liquidity and tradability. A tokenized asset is only useful if you can trade it without gaps between the legal claim and the on‑chain token. Today, many token projects offer nominal tradability but lack the depth and clearing certainty that institutions need.

Who gains first? Custodians, tokenization platforms and trading venues that bridge on‑chain and off‑chain records stand to win. Asset managers able to slice large holdings into smaller, tradable pieces could sell new products that attract retail or yield‑seeking investors. Conversely, legacy players that rely on dated settlement rails or resist new custody models could lose market share.

Price discovery is another wild card. Smaller pools and thin secondary markets can produce volatile prices that don’t reflect the underlying asset’s value. That creates both opportunity and risk: alpha for nimble traders, and big losses for holders who assume token prices equal fair value.

For investors, the take is balanced. Tokenization can expand opportunity sets and reduce some costs. But until market depth, legal certainty and transparent pricing mature, tokenized RWAs are more a complement to conventional holdings than a replacement.

Regulatory and plumbing gaps that keep tokenization from unleashing market‑wide changes

The biggest headaches are legal enforceability and clearance. Regulators in securities, commodities and banking still disagree on how many tokens should be treated. Without consistent rules, tokenized versions of bonds or loans risk being treated differently from their paper cousins — which scares institutional buyers away.

Custody is another snag. Traditional custodians and banks work in a world of final settlement and insured custody. Crypto custody models vary, and until banks adopt custody standards that regulators accept, many institutions won’t move large balances on‑chain. Interoperability with existing clearinghouses and payment systems is also unfinished — the plumbing that moves cash and clears trades needs clear interfaces to token systems.

Compliance friction — KYC, AML, sanctions screening — still often happens off‑chain. That defeats part of tokenization’s promise of seamless settlement and creates operational risk when on‑chain transfers must be reconciled with off‑chain identity checks.

Three adoption scenarios — what would accelerate tokenized RWAs and how markets would respond

Conservative (3–5 years): Slow adoption. Tokenization remains niche, used for pilot issuances and private placements. Institutions wait for clear rules and deep custody options. Markets see occasional spikes in activity but no broad re‑pricings.

Baseline (2–4 years): Gradual scaling. Regulators issue targeted guidance, a few major banks launch custody offerings for tokenized assets, and tokenized bonds and funds gain steady but limited secondary trading. New products appear, and selective liquidity pools form for popular issues.

Upside (1–3 years): Rapid adoption. Clear regulatory frameworks, a handful of high‑profile institutional issuances and interoperable clearing rails drive fast growth. Retail access expands through regulated products, and on‑chain price discovery becomes a meaningful input for conventional markets.

Practical takeaways — what investors and reporters should watch next

Watch rule‑making and enforcement statements from securities and banking regulators — clarity here changes everything. Track major custodians and banks launching token custody or custody partnerships. Follow issuance volumes on token platforms and, crucially, secondary trading depth and spreads; those show whether tokens are truly tradable.

For reporters, the story is less about tech headlines and more about infrastructure: legal opinions, custody approvals, and real settlement tests. For investors, tokenized RWAs are an interesting opportunity with meaningful risks. If you expect material market impact soon, the market will need to prove liquidity, legal certainty and reliable custody — and that won’t happen overnight.

Sources

• cointelegraph.com