When it comes to tokenized assets, saying trillions will be tokenized is easy doing it is the hard part. At Blockworks Digital Asset Summit that gap took the spotlight, as Mantle’s Joshua Cheong joined HyperliquidX, AlpacaHQ and others to map the rollout from billions to trillions.
The clip shared by Mantle Official reframed tokenized assets not with issuance, but for funding and distribution, highlighting three drivers that help decide whether real-world assets come to be core market infrastructure. This perspective on tokenized assets is resonating, as the market is now transitioned into something that has scaled, but that is still small relative to its potential market.
Why Issuance Alone Will Not Scale
Tokenization’s first chapter was about whether a regulated asset could be replicated on a public chain. That’s mostly solved. The tokenized real-world assets (excluding stablecoins) tracked by RWA. Xyz are worth over $35 billion up more than 70% from the prior year led by Treasuries, private credit and equities.
Mantle’s numbers point to phase two. In January it found 71 tokenized assets and in October 1,473 assets and $476 million of distributed asset value an increase of 110% in just 30 days as its release and RWA. Xyz. The growth comes across all types of assets equities, funds, stablecoins, and structured products not one fund-raising gold mine.
Source: Medium
That signals wide-spread formation. But the current funding model constrains velocity. Products are overwhelmingly pre-funded and balance-sheet heavy, meaning how quickly real-world assets hit the chain is constrained. Each issuance takes new capital, custody, and compliance. In the absence of secondary demand, the pipeline stalls.
Also Read: Ondo Finance Expands Tokenized Assets Across Major Networks
Creating Liquidity to Meet Issuance Demand
The second driver is demand driven liquidity. Instead of issuers using assets to build supply on-chain, user demand for used RWA exposure can generate on-chain liquidity and fund new issuance. HyperliquidX demonstrated how perps create deep liquidity and collateral reuse across crypto assets. Applied to tokenized equities, similar dynamics open up hedging and directional exposure with funding for primary issuance.
Source: Medium
AlpacaHQ APIs (by default in fintech apps as fractional equity) show where the demand is coming from. When users can borrow and margin tokenized assets, like stablecoins, cost of capital shrinks. This flywheel brings value to BlackRock, Franklin Templeton and Ondo Finance, which have scaled tokenized funds but need to get distributed beyond crypto channels.
Supporting such a system demands 24/7 settlement, cross-chain collateral mobility and compliant liquidation engines. These are areas where Mantle’s EVM-compatible layer-two, operating as a liquidity chain, can make a difference rather than simply executing trades. It calls for exchanges, custodians, market makers, and DeFi protocols to integrate the same assets. Mantle’s recent focus is on distribution.
Also Read: INJ Price Recovers as Injective Surpasses $1 Billion in Tokenized Assets
Distribution, Velocity, and Regulation
Tokenization-as-a-Service platform, developed with Bybit and backed through xStocks, allows programmable exposure to US equities like Apple and Nvidia, offering fractional ownership and real-time settlement. As RWA. Xyz, Mantle is listed among leading networks alongside Ethereum, Polygon, and Solana.
Source: Binance
For investors, attention shifts from TVL to velocity: how frequently assets move, how they are used as collateral in Aave and Morpho, and how they settle via stablecoin rails. For regulators monitoring MiCA and US market structure bills, leverage on tokenized securities raises questions about investor protection. Risks persist.
Source: LinkedIn
Secondary trading faces regulatory uncertainty, bridging involves security risks, and compliance attestations are still developing. If demand that generates liquidity aligns with infrastructure that reduces servicing costs, the market could expand beyond $35 billion toward $2-10 trillion by 2030, based on projections from BCG and McKinsey. Upcoming milestones include prime brokerage integration, cross-margining with stablecoins, and institutional perpetuals on tokenized RWAs globally now.
Also Read: Chainlink Gets $200 Target as Tokenized Assets Reach $4T
Be the first to comment