NYDIG: Tokenized Assets Offer Modest Crypto Gains—But Real Growth Hinges on Access and Regulation

Tokenization's promise meets regulatory reality. Traditional assets hitting blockchain networks create new markets—but the path to massive adoption runs through compliance gatekeepers and infrastructure gaps.

The Access Equation

Digital versions of stocks, bonds, and real estate need more than a blockchain address. They require bridges to legacy finance—custody solutions, trading venues, and settlement systems that institutions actually use. Without them, tokenized assets remain exotic islands in a vast financial ocean.

Regulation: The Make-or-Break Factor

Watch the rulebooks, not the whitepapers. Clear regulatory frameworks determine whether tokenization becomes a trillion-dollar market or a niche experiment. Jurisdictions carving out sensible rules attract capital; those stuck in ambiguity get bypassed. It's the ultimate scalability test.

The Modest Gains Paradox

Early efficiency wins—faster settlement, reduced intermediaries—deliver incremental improvements, not revolutionary returns. The real value unlock happens when tokenization enables entirely new financial products and global liquidity pools. We're still building the pipes before the flood.

Finance's favorite sport? Building elaborate cages for innovation, then wondering why it doesn't fly. Tokenization's success depends less on technology and more on whether traditional finance decides to open the door—or just install a fancier lock.

In brief

• NYDIG says tokenized RWAs bring small early gains to crypto networks, mainly through fees, with broader value tied to access and connectivity.
• Ethereum leads public blockchains for RWAs, yet strict rules and design limits reduce how deeply these assets can interact with DeFi tools.
• Private networks like Canton dominate tokenized assets, holding most market value due to closer alignment with traditional finance systems.
• Wider adoption depends on regulatory shifts, better infrastructure, and fewer transfer limits before RWAs can play larger roles in DeFi.

NYDIG Sees Gradual Gains From Tokenized Assets as Infrastructure Develops

NYDIG global head of research Greg Cipolaro argued that tokenized stocks and other RWAs will not immediately transform crypto ecosystems. Early benefits, he noted, are modest and mostly tied to basic blockchain usage rather than deeper financial integration.

The benefits to networks these assets reside on, such as Ethereum, are light at first, but increase as their access and interoperability and composability increase.

In the NEAR term, transaction fees are the main benefit for blockchains hosting tokenized assets, Cipolaro noted. Over time, value could grow if assets gain broader access, interact more easily with decentralized finance (DeFi) tools, and carry fewer restrictions. As an example, he pointed to Ethereum, which remains the leading public blockchain for RWAs.

Interest in tokenization has grown as major crypto exchanges push to bring tokenized stocks to the US market. Coinbase and Kraken are among the firms exploring such offerings after launching similar products abroad. 

Regulatory tone in Washington has also shifted. Securities and Exchange Commission Chair Paul Atkins recently indicated that tokenization could be adopted within the US financial system over the next few years, a signal Cipolaro views as supportive of long-term growth.

Still, Cipolaro stressed that progress will take time. Technology requires refinement, infrastructure must mature, and rules need adjustment before tokenized assets can function smoothly within DeFi markets. Until then, the impact on traditional cryptocurrencies is likely to remain limited over the next several years.

Cipolaro: Tokenization’s Early Impact on Crypto Remains Limited

Several factors currently shape how tokenized assets affect blockchain networks:

• Transaction fees generated by tokenized asset activity.
• Network effects from asset issuance and storage.
• Restrictions on who can access or transfer assets.
• Incomplete compatibility with DeFi protocols.
• Regulatory requirements tied to securities laws.

The divide between private and public blockchains remains central to that challenge. Real-world asset tokenization spans a wide range of structures, which complicates integration. 

Cipolaro explained that FORM and function vary depending on whether assets are issued on public or private networks. Canton Network, a private blockchain developed by Digital Asset Holdings, currently dominates the sector. It hosts about $380 billion in represented RWA value, or roughly 91% of the total market.

Public blockchains play a smaller role when compared to private networks. ethereum hosts about $12.1 billion in tokenized assets, yet remains the most active open network for RWAs. Even on Ethereum, asset design often mirrors traditional finance. Securities rules still apply, requiring broker-dealers, transfer agents, KYC checks, investor accreditation, and wallet whitelisting processes.

These controls limit how freely tokenized assets can MOVE across protocols, reducing their usefulness in automated lending and trading systems. As a result, many cannot yet function as collateral, lending assets, or trading instruments within DeFi systems. Cipolaro said such barriers explain why immediate benefits to crypto markets remain “light.”

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