Tokenisation Of Real World Assets

17 January 2026 | 3 minute read

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Tokenisation promises liquidity and accessibility for traditionally illiquid assets—but does it mask hidden risks or create new systemic exposures in global markets?

Tokenisation of real-world assets (RWAs) has accelerated rapidly, with over $750 billion in digital asset-backed tokens issued globally by December 2025 (Chainalysis, Dec 2025). Real estate, private equity, and infrastructure are being digitized to enable fractional ownership, 24/7 trading, and instant settlement. Yet regulatory fragmentation, technological vulnerabilities, and valuation opacity are now central concerns for institutional investors and global regulators alike.

Unlocking liquidity through tokenisation

Digital tokens promise fractional ownership, improved capital efficiency, and faster secondary trading. Platforms report that tokenized real estate liquidity can increase 10–15x compared to traditional private markets (PwC Digital Assets Report, 2025). However, these liquidity gains are conditional on interoperability, custody solutions, and compliance with local laws—any disruption can freeze markets instantaneously.

Emerging regulatory and operational risks

Fragmented regulatory regimes in the U.S., EU, and Asia create legal uncertainty. In late 2025, several tokenized infrastructure offerings faced delayed approvals due to AML/KYC compliance gaps, causing temporary market dislocations. Operational risks, including smart contract vulnerabilities and cybersecurity threats, can create outsized losses, as demonstrated by a $1.2 billion tokenized fund hack in 2024 (CoinDesk, 2025).

Valuation and market transparency challenges

Tokenisation introduces novel valuation challenges. Secondary trading may reflect short-term sentiment rather than underlying asset value, producing volatility in portfolios previously considered illiquid but stable. Price discovery mechanisms remain immature, requiring sophisticated risk models and continuous monitoring.

Staying ahead: integrating tokenised assets strategically

Leading institutions now treat tokenised RWAs as both opportunity and risk vectors, embedding digital asset oversight into broader governance frameworks. Stress-testing tokenised portfolios, ensuring custody resilience, and mapping regulatory exposure are critical. Staying ahead means viewing tokenisation as a systemic portfolio consideration—not a simple liquidity booster.