JPMorgan Delivers Reality Check on RWA Tokenization Amid Regulatory Scrutiny

JPMorgan's latest analysis casts doubt on the once-promising sector of real-world asset (RWA) tokenization. The market capitalization remains stagnant at $25 billion—equivalent to just one week of inflows into U.S. spot Bitcoin ETFs—with traditional finance institutions showing little appetite for adoption.

"The total tokenized asset base remains rather insignificant," said Nikolaos Panigirtzoglou, a JPMorgan strategist. "Traditional investors don’t see a compelling use case yet, and there’s no meaningful migration of bank deposits to blockchain-based alternatives." The momentum now rests primarily with crypto-native firms rather than institutional players.

Meanwhile, global regulators are turning their attention to adjacent risks. A fresh probe into stablecoin-related money laundering underscores the tightening oversight of crypto’s intersection with traditional finance. The findings suggest RWA tokenization may need stronger institutional catalysts to reignite growth.