Jiasun Li is the Robert D. Johnston Associate Professor of Finance at George Mason University’s Costello College of Business. His research focuses on the business applications of emerging technologies, with a specific emphasis on blockchains and FinTech innovation. His work has been published in leading business journals including the Journal of Finance, Review of Financial Studies, and Management Science as well as major computer science outlets including ACM Web (WWW), Advances in Financial Technologies (AFT), and Financial Cryptography (FC).
Abstract
The tokenization of real-world assets (RWAs) represents a pivotal development at the intersection of traditional financial markets and decentralized finance. This study undertakes a systematic examination of the RWA ecosystem through detailed due diligence of more than 180 products spanning six major asset classes: private credit, stocks, global bonds, commodities, institutional funds, and U.S. Treasuries. Our methodology combines a standardized review of legal structures and custodial arrangements with empirical analyses of on-chain transaction data. The analysis reveals that the RWA market, while still nascent, has already reached a scale exceeding $25 billion and exhibits strong concentration, with dominant platforms accounting for over 80% of market share in several segments. Tokenization has facilitated fractional ownership and contributed to the establishment of novel legal-technical frameworks, particularly Swiss-based special purpose vehicles (SPVs) and U.S.-based statutory trusts. However, the oft-cited promise of enhanced on-chain liquidity remains largely unfulfilled. Instead, the data reveal a persistent divergence between the theoretical advantages of 24/7 trading and the empirical reality of limited secondary-market activity and predominantly passive holding patterns. By providing a comprehensive survey of the current RWA landscape, this research identifies the structural frictions that must be addressed for the market to evolve from an experimental proof-of-concept into a mature, institutionally integrated asset class.
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