Bank of America Highlights Growing Momentum in Tokenization of Real-World Assets

Tokenization of real-world assets (RWAs) is emerging as a focal point for investors, surpassing the dominance of U.S. dollar-backed stablecoins in market discussions. Bank of America's latest report underscores a shift toward blockchain-based transactions involving stocks, bonds, bank deposits, and real estate—a transformation poised to unfold over multiple years.

The process demands substantial infrastructure development but promises round-the-clock global access, instant settlement, and improved liquidity. Smart contracts will serve as the backbone, ensuring compliance and operational efficiency. Dubai's recent launch of a tokenized real estate platform exemplifies this trend, targeting $16 billion in digitized assets by 2033 while introducing fractional ownership to unlock liquidity.

Investors remain wary of potential disruptions to traditional transaction services, yet the institutional embrace of blockchain for RWAs signals irreversible momentum toward a digitized financial ecosystem.