Emerging market economies are expected to play a leading role in the growth of real-world asset (RWA) tokenization starting in 2026, according to crypto industry executives. As these economies face persistent challenges in capital formation and access to global investors, blockchain-based tokenization is increasingly seen as a practical solution rather than a speculative trend.
Jesse Knutson, head of operations at crypto exchange Bitfinex, believes that countries without deeply entrenched financial infrastructure can adopt tokenized assets faster than developed markets. Unlike advanced economies that rely on legacy banking systems, emerging markets are more open to “leapfrogging” directly to digital financial rails such as blockchain settlement and stablecoins.
Why Emerging Markets Are Adopting RWA Tokenization Faster
Tokenization allows physical and traditional financial assets—such as real estate, commodities, or debt instruments—to be represented on blockchain networks. This process reduces reliance on intermediaries, lowers transaction costs, and opens access to global pools of capital.
In emerging economies, where attracting foreign investment can be slow and expensive, tokenization enables onchain capital formation that bypasses many traditional barriers. It also supports fractional ownership, allowing retail investors to participate in assets that would otherwise be unaffordable.
Knutson notes that companies offering fixed returns but lacking access to traditional financing stand to benefit the most. While developed markets have focused heavily on tokenizing fixed-income products like U.S. Treasuries and money market funds, developing economies are prioritizing real estate and commodities—assets that align more closely with local economic needs.
Over the next decade, the total market capitalization of tokenized RWAs could reach several trillion dollars. However, this growth depends on major financial institutions moving beyond pilot programs and regulatory sandboxes into full-scale commercial offerings.
Key Challenges Facing RWA Tokenization Adoption
Despite its promise, RWA tokenization still faces significant hurdles. Legal enforceability of onchain contracts remains uncertain in many jurisdictions, and ensuring sufficient liquidity for smooth settlement without excessive price slippage is another concern.
Investor protection frameworks also need to evolve alongside tokenized products to prevent misuse and build trust. From a technical standpoint, interoperability between different blockchain networks is a major obstacle. Varying token standards, along with differences between permissioned blockchains and open crypto ecosystems, complicate asset transfers and integration.
To unlock the full potential of RWA tokenization, issuers must ensure that tokenized assets can move freely across the broader crypto ecosystem and be used as collateral in decentralized finance (DeFi) applications. Solving these challenges will be critical for transforming tokenization from a niche innovation into a core component of global finance.
