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Perspective by: Jakob Kronbichler, co-founder and CEO of Clearpool and Ozean
Real-world assets (RWAs) onchain are no longer merely an idea — they are gaining significant momentum.
Stablecoins exemplify this. They have emerged as a primary source of onchain activity, with yearly transfers exceeding Visa and Mastercard by 7.7% last year. Tokenized US Treasurys are attracting interest from institutions seeking yield.
Stablecoins embody more than mere successful tokenization. They have transformed into financial infrastructure. They are not just digital dollars but programmable currency upon which other applications can develop.
This platform dynamic distinguishes successes from the numerous underperforming RWA initiatives; the majority of tokenized assets are created as digital duplicates rather than as foundational elements.
Tokenization does not guarantee adoption
Although it’s possible to tokenize everything, that doesn’t ensure its utility.
A brief glance at RWA dashboards reveals rising total value locked, more issuers, and increased visibility. Yet, much of that value is concentrated in a handful of wallets, with limited integration into decentralized finance (DeFi) ecosystems.
This isn’t liquidity; it’s idle capital.
Initial RWA models aimed at encapsulating assets for custody or settlement rather than facilitating their use within DeFi frameworks. Legal classification exacerbates the problem, restricting how and where assets can move.
Stablecoins have flourished because they tackled infrastructure challenges, not merely representation issues. They permit instant settlement, eliminate pre-funding for international transfers, and integrate effortlessly into automated systems. Most RWAs are still conceived as digital certificates instead of functional elements within a wider financial framework.
This is beginning to shift. New designs are compliance-focused and compatible with DeFi. Adoption will occur when tokenized assets are developed for integration, not just for existence.
Integration is not solely a technical hurdle.
Compliance is the obstacle
The primary bottleneck for RWA expansion is legal. When a tokenized T-bill is categorized as a security offchain, it retains that classification onchain. This constrains the protocols it can engage with and who can access it.
Thus far, the workaround has involved creating restricted DeFi: KYC-compliant wallets, allowlists, and permissioned access. However, this strategy undermines composability and fragments liquidity, which are the core features that make DeFi powerful.
While token wrappers may enhance accessibility, they cannot solve the foundational regulatory status. Legal structuring must precede all else.
The Senate’s approval of the GENIUS Act signifies a crucial advancement, establishing a federal framework for stablecoins backed 1:1 by Treasurys. It’s the most compelling indication yet that compliant, auditable digital assets are shifting from the sidelines to the center of institutional finance.
This transformation will allow RWAs to progress from static representations to functional, scalable financial instruments.
Liquidity has not aligned with the narrative
A key value proposition of RWAs is liquidity: 24/7 access, expedited settlement, and real-time transparency. Nonetheless, most tokenized assets currently function similarly to private placements, characterized by low volume, wide spreads, and restricted secondary market activity.
Liquidity has fallen short because regulated assets cannot circulate freely in DeFi. Without interoperability, markets remain isolated.
Related: RWA backing: How do issuers ensure 1:1 peg with tokenized assets?
Stablecoins demonstrate that liquidity arises from composability. When currencies like the euro and Singapore dollar exist as programmable tokens, treasury operations evolve from multi-step processes to immediate cross-border transactions. Most tokenized assets miss this opportunity because they are conceived as endpoints instead of interoperable components.
The answer isn’t merely more tokens. Instead, an infrastructure is required that encompasses both sides of the divide, incorporating built-in compliance and transparency that meets institutional requirements.
Institutions require an upgrade
From an institutional standpoint, most existing systems may be cumbersome, but they are compliant. They function adequately. Without a significant improvement in efficiency, cost, or compliance, transitioning to blockchain is a challenging proposition. This shifts when RWA infrastructure is specifically crafted for institutional workflows.
When compliance is not merely an add-on but seamlessly integrated. When connections to liquidity, institutional-grade custody, and reporting are fluid, not pieced together.
That’s what it will take to make shifting onchain beneficial.
DeFi requires usable assets
RWAs were designed to close the divide between DeFi and traditional finance. Yet, as of now, many are trapped in limbo.
As institutions gradually approach onchain integration, DeFi protocols must adapt their frameworks to accommodate assets with real-world limitations.
DeFi’s most commonly utilized assets continue to be native: stablecoins, Ether (ETH), and liquid staking tokens (LSTs). Tokenized RWAs remain largely isolated, unable to engage in lending markets, collateral pools, or yield strategies.
Legal constraints surrounding asset classification and user access imply that some protocols are unable to support them, at least without substantial adjustment.
This is beginning to evolve. We are witnessing new primitives tailored to make RWAs composable within vetted environments, bridging compliance and usability without compromise.
This evolution is crucial: It will enable RWAs to be functionally relevant within DeFi, not merely adjacent to it.
Every institution requires a tokenization strategy
The initial wave of institutions is now determining their tokenization strategy. The distinction between success and failure hinges on platform thinking: establishing infrastructure that others can build upon, rather than simply wrapping assets in digital form.
Just as every business required a mobile strategy in 2010 and a cloud strategy in 2015, institutions now need a framework for tokenized assets.
The firms that recognize this shift early will design their systems to engage in and potentially dominate the emerging tokenized economy.
Those who delay will find themselves constructing on someone else’s platform, with restricted control, less adaptability, and diminished prospects.
Perspective by: Jakob Kronbichler, co-founder and CEO of Clearpool and Ozean.
This article is for informational purposes only and is not intended to constitute and should not be construed as legal or investment guidance. The opinions, thoughts, and views expressed here are solely those of the author and do not necessarily mirror or represent the views and opinions of Cointelegraph.
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