The financial tokenization accelerates its pace. Vlad Tenev (CEO of Robinhood) has called it “inevitable,” comparing it to an incoming “freight train,” stating that in major markets we will see the first regulatory frameworks emerge in the next five years, while full adoption could take over a decade (CNBC).
In this context, the debate focuses on numbers, timelines, and a potentially disruptive impact on market construction, post-trade, and costs. That said, much will depend on the coordination between authorities and operators.
According to the data collected by our analysis team, updated as of October 1, 2025, over 60% of RWA and tokenization projects are still in the pilot phase, and less than 10% of the estimated value is currently liquid in tokenized markets; industry analysts note that the most advanced experiments involve bonds and private markets.
These findings align with institutional research and reports that emphasize the importance of regulatory frameworks and shared infrastructures, both at the European and global levels (World Economic Forum, analysis and estimates on the global market; European Commission, regulatory initiatives and DLT Pilot Regime).
In brief (TL;DR)
- 5 years: the first regulatory frameworks expected in key markets; widespread adoption in over 10 years.
- Tokenized market estimated at approximately $32 billion (RWA.xyz), compared to a global equity value exceeding $115 trillion (World Economic Forum, 2023 estimate, updates to 2025 indicate growth trends but low current penetration).
- Involved actors: traditional asset managers, banks, crypto exchanges, and DLT infrastructures.
- Main risk: regulatory uncertainty and challenges in integration with legacy systems.
What Tenev said at Token2049
During the Token2049 in Singapore, Tenev described tokenization as “inevitable,” comparing it to a “freight train” in motion.
According to the CEO of Robinhood, the main markets will see the first regulatory frameworks emerge within the next five years, although full-scale adoption will likely take longer.
The message is clear: there will be no sudden jumps, but a gradual path guided by new rules and technological infrastructures. Yet, the general trajectory already seems outlined.
Why it matters: numbers, efficiency, and costs
Tokenization offers the potential to reduce the number of intermediaries, speed up the settlement process, and decrease post-trade operational costs.
The technology enables native asset fractionalization, increasing liquidity 24/7, thanks to programmable transfers via smart contracts. That said, efficiency must coexist with compliance requirements and rigorous controls.
As of today, the tokenization market, with an estimated capitalization of about https://rwa.xyz, is still in its infancy, especially when compared to the value of the global public equity, which exceeds https://www.weforum.org (2023 estimate, World Economic Forum).
This difference highlights enormous potential, but also the need for scalability and regulatory compliance. Indeed, without a shared infrastructure, adoption will remain fragmented.
Timelines for Adoption
- 0–5 years: introduction of pilot regulatory frameworks and targeted use cases (e.g., bonds, money market funds, private markets), as already experimented with the launch of over 200 tokenized securities on Arbitrum for European users.
- 5–10 years: gradual integration with existing infrastructures, definition of interoperability standards, and increase in trading volumes.
- 10 years+: potential for mainstream adoption in specific asset classes, with convergence of legacy solutions and DLT technologies, capable of offering digital custody and full security.
The rules that will unlock the market: USA vs EU
United States — In the USA, the regulatory path for tokenized securities depends on the interpretation of existing regulations (SEC, CFTC) and legislative initiatives currently under discussion.
Among the proposals is the Financial Innovation and Technology Act (FIT21), whose legislative process is still ongoing between the House and the Senate (Congress.gov). The final framework for aspects such as custody, ATS for digital assets, and the distinctions between security and commodity remains to be defined. In this context, the scope of the rules will be decisive.
European Union — In Europe, the regulatory framework already appears more defined. The MiCA regulation governs crypto assets not qualified as financial instruments, while security tokens continue to be regulated under MiFID II. Additionally, the DLT Pilot Regime promotes controlled experiments on markets and settlement based on DLT, contributing to an initial advantage in regulation (European Commission). It should be noted that harmonization between public and private actors remains a key step.
In summary, legal certainty will be the driver of adoption: without clear rules, use cases remain confined.
Who is experimenting today
How it works, in practice
Tokenization allows the transformation of economic rights on real assets into digital tokens recorded on blockchain, enabling on-chain management and programmable controls.
This results in traceability, with execution mechanisms that are more streamlined compared to traditional processes. For a practical guide on the technical and regulatory steps, see our dedicated guide: Tokenization: how it works and why it interests the markets.
- Issuance: creation of the token that represents the underlying asset.
- Registration: insertion of the token into a smart contract on a distributed ledger, complete with transfer and execution policy.
- Trading and regulation: operations conducted on regulated platforms or environments that accept tokenized instruments, with significantly faster settlement processes.
Mini‑FAQ
Which assets are candidates for tokenization?
Stocks, bonds, funds, private debt instruments, real estate, and credits; the limit is not technology, but the legal and market structure. In fact, the legal framework determines what is actually achievable.
Is it safe and regulated?
Security and regulation depend on the jurisdiction, custody model, and trading venue.
In the EU, the MiCA, MiFID II, and DLT Pilot Regime regulations apply, while in the USA the regulatory framework is evolving between SEC/CFTC rules and legislative proposals like FIT21 (Congress.gov). That said, operational safeguards remain central.
Impact and Prospects
If tokenization consolidates, it can reduce friction, increase transparency, and expand access to financial assets.
However, the transition will require shared standards, interoperability, and credible governance, essential elements for the success of the process. Yet, without coordinated steps, the benefits risk emerging only sporadically.
Tenev effectively summarizes his vision: “Tokenisation is like a freight train”. The inertia of the existing financial system is real, but the transformation will mainly depend on the definition of clear rules and their careful implementation.
Source: https://en.cryptonomist.ch/2025/10/02/tokenized-stocks-in-5-years-tenev-pushes-the-revolution/
