September 26, 2025

The Great Unlock: How Institutions Are Embracing Tokenized Real-World Assets

Venturebloxx has just released their flagship RWA Tokenization Report, co-published with This Week in Fintech, Stablecon, The Block, London Blockchain Conference, and other leading ecosystem partners. Brickken was proud to contribute to this report, bringing our regulatory and technological expertise to one of the most comprehensive explorations of tokenization today.

Below is a detailed breakdown of the key insights about institutional adoption and finance tokenization from the report. We’ve highlighted how finance is being reshaped through tokenized real-world assets and why this shift is now impossible to ignore.

TL;DR

Institutional tokenization is no longer a trend. It's reshaping how capital moves, assets are managed, and finance operates globally. Here’s what’s happening and why it matters:

  • Finance tokenization is giving institutions 24/7 access to real-world assets with instant settlement, lower costs, and built-in compliance.
  • Tokenized T-Bills are making public debt more liquid and accessible, already managing billions in digital assets.
  • Private credit tokenization is quietly becoming a $16B+ segment, offering new income opportunities through fractional ownership.
  • Gold and commodities are being digitized as Asset-Referenced Tokens, fully backed and regulated under MiCA.
  • Tokenized equity is unlocking global fundraising with smart governance tools, legal enforceability, and non-fungibility where required.

Tokenized T-Bills: Liquidity, Access, and Yield at Scale

As interest rates remain high, both TradFi and DeFi investors are seeking stable yield. Accessing U.S. Treasury bills through traditional systems can be time-consuming and inefficient. With tokenization, short-term debt instruments become digital assets, making access faster, cheaper, and more transparent.

Today, tokenized T-Bills account for over $7.49 billion in AUM, issued on public blockchains with full transparency and settlement speed.

Leading examples include:

  • BlackRock’s BUIDL, which holds over $2.2 billion in tokenized U.S. debt.
  • Franklin Templeton’s BENJI, offering low-cost, high-efficiency access.
  • Ondo Finance’s USDY, tailored for non-U.S. investors with regulatory alignment.

Why this matters for institutions:

  • Real-time (T+0) settlement with lower counterparty risk
  • 24/7 access, even during weekends and holidays
  • Interest payments executed through smart contracts

Regulatory view:
Tokenized T-Bills are still considered traditional debt securities and must comply with frameworks such as MiFID II. Within the European Union, the DLT Pilot Regime now allows for full on-chain issuance, settlement, and custody.

Corporate Bonds: Institutional Debt Markets Without Middlemen

Corporate bond issuance is evolving from static, paper-based infrastructure to programmable, tokenized systems. The goal is simple: maintain the legal structure of debt while improving issuance, liquidity, and investor access.

Recent milestones:

  • Luxembourg launched the first tokenized UCITS bond fund.
  • SG-Forge now offers tokenized debt that aligns with MiCA requirements.
  • 21X operates one of the first fully regulated DLT-based trading and settlement systems in the EU, approved by BaFin.

Institutional benefits:

  • Smart contract-based coupon payments
  • Lower issuance and operational costs
  • Increased access through fractional ownership

Legal framing:
Tokenized bonds must comply with traditional securities law. Issuers often use Special Purpose Vehicles (SPVs) or structured debt programs. Custody must be regulated, and investor onboarding must follow KYC/AML protocols. Platforms like Brickken help issuers integrate these legal and compliance layers directly into the token design.

Tokenized Private Credit: Quiet Growth With Institutional Potential

Tokenized private credit has quietly become one of the most mature RWA segments. While less visible than tokenized T-Bills or equities, it now accounts for over $16.8 billion in AUM.

A standout example:

  • Figure Technologies has originated over $16.2 billion in tokenized loans, combining blockchain with traditional credit markets.

Why institutions are interested:

  • Exposure to high-yield, alternative fixed income
  • Transparent on-chain tracking of loan performance
  • Streamlined repayments and automated servicing

Regulatory perspective:
Private credit instruments are typically issued via private placements. That means:

  • Investors must meet eligibility criteria (e.g., professional, qualified, or accredited status)
  • Tokens must represent enforceable claims to cash flows
  • AML and KYC remain mandatory.

Tokenized Commodities and Gold: Real-World Value, Digital Delivery

Tokenizing physical commodities brings transparency, liquidity, and programmability to asset classes that were traditionally siloed and illiquid. Gold tokenization is the most advanced use case in this category.

Leading examples:

  • PAXG (Paxos Gold) and Tether Gold (XAUT) are backed by physical reserves and used in both TradFi and DeFi environments.

Institutional use cases:

  • Direct exposure to physical assets without logistics
  • On-chain audits and proof-of-reserve mechanisms
  • Collateral for lending or DeFi positions.

Legal overview:
In the EU, gold-backed tokens are classified as Asset-Referenced Tokens (ARTs) under MiCA. Issuers are required to:

  • Prove 1:1 reserve backing
  • Publish MiCA-compliant whitepapers
  • Register as Crypto-Asset Service Providers (CASPs), which are licensed entities authorized to offer crypto-related services like issuance, trading, or custody.

Infrastructure and Commodities: Tokenizing the Real Economy

Institutions are also exploring tokenization for infrastructure assets such as energy projects, metals, and commodities linked to ESG mandates.

What’s happening:

  • Governments like the UAE are piloting blockchain-based infrastructure financing
  • ESG-linked tokenized assets are emerging as investor preferences shift toward sustainable finance

Tokenization benefits:

  • Easier access to capital through fractional ownership
  • Transparent ESG metrics embedded into tokens
  • Transferability and liquidity in otherwise illiquid sectors

Note: ESG stands for Environmental, Social, and Governance: a set of criteria used to evaluate a project’s sustainability and ethical impact.

Equity Tokenization: Bridging Global Capital Markets

Tokenizing equity is one of the most complex, but most transformative use cases of tokenized real-world assets. A tokenized share must digitally mirror all legal rights of traditional equity, including voting, dividends, and transfer restrictions.

What’s being built:

  • Digitally native shares that integrate with smart contract-based cap tables
  • Secondary trading through regulated ATSs (e.g., INX, Archax) or under the DLT Pilot Regime
  • Jurisdiction-specific features like on-chain shareholder registries.

Why it matters:

  • Enables cross-border investment and global fundraising
  • Brings automation to governance and reporting
  • Supports non-fungibility, where necessary, for restrictions like quotas or investor caps

Legal backbone:
Tokenized equity must align with company law. Articles of incorporation must reference digital shares, and legal rights must remain enforceable in both on-chain and off-chain scenarios. Brickken provides infrastructure for companies to manage this process with embedded compliance, investor dashboards, and secure smart contract flows.

Institutional Tokenization Is Already Here

The tokenization of real-world assets is no longer a theory. With billions already deployed across T-Bills, credit, equity, and commodities, tokenization is now a regulated, compliant, and scalable infrastructure for institutional capital markets.

Financial institutions, asset managers, and even governments are rebuilding the rails of finance using programmable, blockchain-based infrastructure. They are backed by traditional legal enforceability and modern digital standards.

Explore the Full Report

To go deeper into these insights and understand what’s next for institutional tokenization, download the full Venturebloxx RWA Tokenization Report.

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