Wall Street’s Real-World Asset Tokenization Faces Infrastructure Hurdles

Real-world asset (RWA) tokenization has surged 118% year-over-year to $27 billion, emerging as crypto's fastest-growing sector. BlackRock's BUIDL fund now holds $1.7 billion in tokenized U.S. Treasuries, while Franklin Templeton, Apollo, and KKR explore on-chain private credit and real estate solutions.

Despite institutional interest, adoption barriers remain. Asset commingling, weak audit trails, and unregulated custody solutions prevent major allocators from fully embracing tokenization. The next phase requires platforms to integrate compliance frameworks, real-time auditing, and institutional-grade custodial safeguards.

The market's trillion-dollar potential hinges on building infrastructure that meets traditional finance standards. Current experiments demonstrate demand, but widespread institutional capital awaits technical and regulatory maturation.