Tokenization Faces Reality Check as Adoption Hurdles Persist
Tokenization’s promise to revolutionize asset management is hitting roadblocks as the industry struggles to demonstrate tangible value. Despite the hype surrounding blockchain-based asset representation, institutional and retail investors remain skeptical of tokenized portfolios that merely replicate traditional financial products without improving accessibility or liquidity.
The sector’s crypto-native appeal fails to address broader market needs, with regulatory inconsistencies further stalling progress. "Digital twins of inefficient traditional products won’t drive mainstream adoption," observes one industry analyst, noting that true innovation requires reimagining asset structures rather than simply porting them to blockchain.