RWA Tokenization: Building the Onchain Asset Economy

RWA tokenization sits between two systems built around different assumptions. Securities markets depend on regulated issuers, investor eligibility, custodians, transfer agents, market makers, and jurisdiction-specific rules. Onchain markets make assets easier to compose, move, trade, and use as collateral. The central challenge is making tokenized assets work across both environments without losing the protections of traditional finance or the utility of blockchain-based markets.

In Episode 12 of the Stablecoin Builder Series, Stacey-Ann Pearson, APAC Director at Utila, is joined by Peter Chung, Head of Research at Presto; Sean Chung, VP Global Business Development at R25; Aaron Gwak, Founder & CEO of Libeara; and Gabriel Gareth Foo, DeFi Growth Lead at Securitize, to discuss where RWA tokenization is gaining traction, why liquidity and distribution shape adoption, and how tokenized assets can become useful across onchain funds, collateral markets, secondary trading, and institutional workflows.

Key Takeaways

Stablecoins are increasing demand for onchain financial products

Several speakers connected the momentum behind RWA tokenization to the growth of stablecoins. As more users, businesses, and institutions hold value onchain, they also need ways to manage that value without constantly moving back into traditional financial rails. That creates demand for tokenized money market funds, treasuries, credit products, funds, and other assets that can sit closer to stablecoin liquidity.

Tokenization needs utility after issuance

Putting an asset onchain does not automatically create value. The panel repeatedly returned to the same production question: what can investors actually do with the tokenized asset after it exists? Utility can come through secondary markets, collateral use, borrowing against the asset, DeFi integrations, easier distribution, or improved access. Without that utility, tokenization risks becoming a new wrapper around an old product.

Treasury products still lead, but the asset mix is expanding

The panel discussed strong demand for tokenized Treasury bills and money market-style products, especially among longer-term holders looking for lower-volatility yield. But the discussion also covered private credit, trade finance, corporate bonds, tokenized equities, pre-IPO exposure, and higher-yield strategies. The next phase of RWA growth will likely involve a broader credit curve rather than one dominant asset class.

Production infrastructure has to support institutional operating requirements

RWA products cannot rely on fragmented Web3 workflows if the target users are enterprises, asset managers, allocators, or regulated institutions. Sean Chung emphasized the need for enterprise-grade key management, policy controls, role-based approvals, custody workflows, and standardized interfaces. Institutions cannot rely on raw private keys or ad hoc wallet processes when real capital, internal approvals, and compliance obligations are involved.

Pricing, NAV, and proof of reserves matter

Tokenized assets need reliable information about the underlying asset. The panel discussed the role of oracles, NAV reporting, proof of reserves, and offchain data in making RWAs trustworthy onchain. This becomes especially important when the asset is not natively onchain and investors need confidence that the token accurately reflects the value, composition, and status of the underlying instrument.

Liquidity and distribution are as important as technology

The speakers were clear that technology alone will not define the winners in RWA tokenization. Distribution, issuer reputation, market access, regulatory clarity, and liquidity will matter heavily. A technically sound tokenized product still needs demand, trusted partners, market venues, and clear pathways for investors to enter, exit, trade, or use the asset.

Secondary markets can make RWAs more useful

Peter Chung argued that trading venues are a critical part of making tokenized assets useful. If an asset can be traded and converted into cash or cash equivalents more easily, it becomes more attractive as collateral and more efficient as a financial instrument. Secondary liquidity can turn tokenized assets from static holdings into assets that can support broader onchain financial activity.

Regulation shapes access, but also creates constraints

The panel discussed a core tension in tokenization: broader access is one of the main promises of blockchain, but regulated securities still operate inside jurisdictional rules. Aaron Gwak emphasized that tokenized regulated assets still need to respect securities law, investor eligibility, and legal ownership frameworks. Better technology does not remove the need to protect investors or comply with market rules.

Traditional finance and crypto-native firms need each other

Banks, custodians, asset managers, transfer agents, market makers, infrastructure providers, and DeFi protocols all have roles to play. Peter Chung noted that traditional intermediaries already control many existing user relationships, while crypto-native firms often bring the technology and operating expertise needed to bring assets onchain. RWA adoption will depend on collaboration between both sides.

Accessibility remains the promise and the challenge

Tokenization can improve access to assets that were previously difficult for some investors to reach. But the panel also discussed the limits of that promise when products still require licensed brokers, qualified investors, large minimum tickets, or jurisdiction-specific access. The technology can expand access, but regulation, distribution, and product structure determine how much access actually changes.

Key Spaker Insights

Aaron Gwak, Founder & CEO, Libeara

“People will want to manage stablecoin wealth in stablecoins without necessarily having to off-ramp everything that they get to generate returns from the holdings.”

Explaining why stablecoin adoption is helping drive demand for tokenized financial products.

Peter Chung, Head of Research, Presto

“Blockchain is a tool to upgrade the financial system.”

Describing why regulatory and institutional attitudes toward blockchain-based financial infrastructure are becoming more constructive.

Gabriel Gareth Foo, DeFi Growth Lead, Securitize

“What’s the point of putting stuff onchain if we don’t do anything with it?”

Highlighting why tokenized assets need real use cases after issuance.

Aaron Gwak, Founder & CEO, Libeara

“The world’s financial system is still built around trust.”

Explaining why tokenized securities still need legal structure, investor protection, and confidence in the underlying asset.

Sean Chung, VP Global Business Development, R25 [HEADSHOT]

“You can’t have a CFO of an enterprise run around with a private key and make sure it’s secure.”

Explaining why institutional RWA adoption requires enterprise-grade custody, policy controls, and standardized operating infrastructure.

Sean Chung, VP Global Business Development, R25

“Distribution is everything.”

Connecting liquidity, demand, and market access to the long-term success of tokenized asset products.

Peter Chung, Head of Research, Presto

“Tokenization in theory should be a technology that improves accessibility.”

Discussing the promise of broader market access while acknowledging that compliance and regulation can limit how far that access extends.

Gabriel Gareth Foo, DeFi Growth Lead, Securitize

“We want to be able to link these two markets in a very seamless and scalable way without fragmenting liquidity onchain.”

Explaining how institutional-grade secondary liquidity may depend on connecting onchain access with existing traditional market liquidity.