Bank of America Hails RWA Tokenization as ’Mutual Fund 3.0’ in Blockchain Evolution

Bank of America (BAC) has positioned the tokenization of real-world assets (RWAs) as the next transformative phase in investment products, dubbing it "mutual fund 3.0" in a September 5, 2025 analyst report. Led by Craig Siegenthaler, the report underscores a seismic shift toward blockchain-based platforms for traditional assets like stocks, credit, and real estate.

The financial giant frames this as the dawn of a multi-year transition to an on-chain financial system. Tokenization unlocks 24/7 trading, instant settlement, and fractional ownership—advantages now attracting institutional heavyweights like BlackRock, JPMorgan, and KKR. Private credit and Treasuries dominate the $28 billion on-chain RWA market, with tokenized money market funds poised for early adoption due to their yield advantages over stablecoins.