Bitcoin Referenced as Experts Say Most Financial Assets Could Be Tokenized Within Five Years, But Markets Lack Infrastructure

Published: 15 October 2025 | Updated: 15 October 2025 | By COINOTAG

• Tokenization momentum is real but unequal:

• Major institutions are building tokenization stacks, yet broker distribution and trading rails lag.

• Total on‑chain real‑world assets (RWA) reached $33.91 billion with 483,892 asset holders, showing growth but limited liquidity.

Asset tokenization: A five-year timeline to tokenize all financial assets is optimistic; adoption will be uneven. COINOTAG analysis of risks and RWA data.

What is asset tokenization?

Asset tokenization is the process of creating digital tokens on a blockchain that represent ownership or economic rights in real‑world financial assets. Tokenization can automate issuance, settlement and corporate actions, reduce intermediaries, and potentially expand access to fractional ownership across asset classes.

How realistic is the five-year timeline to tokenize every financial asset?

Industry leaders have publicly forecast rapid adoption, but independent experts emphasize structural barriers. Joe Moglia, former TD Ameritrade chairman and current chair of Ethereum treasury FG Nexus, told CNBC that “five years from now, there’s not going to be a stock…that’s not in effect tokenized.”

However, Musheer Ahmed, Founder & MD of Finstep Asia, called the five‑year target “highly optimistic,” noting that most trading rails and infrastructure will take many years to build. Fabian Dori, Chief Investment Officer at Sygnum, expects tokenization to move from liquid products toward less liquid, higher‑risk assets over time.

Large asset managers are experimenting with tokenization: BlackRock has described developing proprietary tokenization technology and discussing wallet integration; CEO Larry Fink has publicly advocated for tokenizing assets to reduce intermediaries and lower costs. These institutional moves accelerate supply‑side capability, but secondary‑market distribution remains limited.



Market dynamics and current data

Adoption varies by jurisdiction. The U.S., Hong Kong, Singapore and the UAE are leading regulatory and commercial efforts to support tokenized products. Most other markets still lack clear legal frameworks and broker engagement for distributing tokenized securities.

Liquidity is a central constraint. As noted by market practitioners, many real‑world assets (RWAs) are inherently illiquid and not suited to daily turnover. Current offerings outside of tokenized bonds see low trading volumes because brokers, private banks and funds have not widely marketed them.

On‑chain measures show growth but modest scale: Total RWAs on‑chain reached $33.91 billion, up 6.6% month‑over‑month, with 483,892 total asset holders (RWA.xyz data). These figures indicate expanding adoption, yet they remain a small fraction of the global asset base.

Frequently Asked Questions

Will tokenization replace traditional stocks and ETFs in five years?

Unlikely across all markets within five years. Tokenization will grow rapidly for certain asset classes and jurisdictions, but full replacement depends on widespread regulatory alignment, broker distribution, custody and settlement reforms, and client demand—factors that typically evolve over many years.

How will tokenization affect everyday investors?

Tokenization can enable fractional ownership, faster settlement and potentially lower fees, making some assets more accessible. For most investors, benefits will arrive gradually as regulated products, custodial solutions and broker offerings expand in their region.

Key Takeaways

• Momentum is growing: Major institutions and asset managers are investing in tokenization technology and pilots.
• Adoption will be uneven: Regulatory frameworks and broker infrastructure differ by jurisdiction, slowing universal rollout.
• Liquidity limits matter: Many RWAs are illiquid; broader distribution and marketing by intermediaries are needed to create vibrant secondary markets.

Conclusion

The drive toward asset tokenization is backed by institutional resources and demonstrable on‑chain growth, but experts view a blanket five‑year timeline as overly optimistic. Progress will be incremental and geographically uneven as markets build legal frameworks, trading rails and distribution capacity. COINOTAG will continue to monitor regulatory developments, institutional pilots and RWA metrics to track when tokenized markets move from niche to mainstream.