Tokenization is set to revolutionize the financial sector more swiftly than digital technology transformed traditional media like newspapers, CDs, and other analog formats, according to Keith Grossman, the president of crypto payments firm MoonPay.
“While many feared digitization would annihilate media, it actually prompted its evolution,” Grossman stated, noting that the tokenization of real-world assets (RWA), which involves representing conventional assets on-chain, will compel traditional institutions to adapt. He added:
“This is no longer theoretical. BlackRock is providing tokenized funds. Franklin Templeton is managing tokenized money market funds on public blockchains. Major global banks are experimenting with on-chain settlement, tokenized deposits, and real-time asset transfers.”
Financial giants like Citi, Bank of America, and JPMorgan Chase will evolve into a different form, Grossman remarked, similar to how media companies persisted following the transition to digital distribution in the late 1990s and early 2000s, which disrupted long-standing business models.
Ultimately, the entities that thrive in the ongoing transition to tokenized finance will be those that embrace the change rather than resist the unavoidable shift to a globally blockchain-powered financial system, he emphasized.
Related: Wall Street’s $4 quadrillion backbone to roll out tokenized US Treasurys
Why tokenized assets can change the game
Tokenizing real-world assets offers numerous advantages, such as providing 24/7 market access, global scaling of asset classes, reduced transaction costs via disintermediation, and minimizing settlement times to minutes, rather than days.
In September, the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) released a joint statement about establishing a regulatory framework to support 24/7 capital markets.
The transition to a 24/7 trading financial system signifies a significant shift from the current operation of traditional markets, which close during nights, weekends, and holidays.
In December, the Depository Trust and Clearing Corporation (DTCC), a settlement and clearing entity that managed approximately $3.7 quadrillion in settlement volume in 2024, gained approval from the SEC to initiate the offering of tokenized financial instruments.
The DTCC aims to launch tokenized assets in the latter half of 2026, beginning with US Treasuries and stock indices.
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