Written by Silvia Pavelli
On-Chain Assets Find Firmer Ground as Global Regulators Clarify the Path Forward
The tokenization of real-world assets (RWA) is rapidly moving past its experimental phase and into a new era of institutional-grade infrastructure, spurred by increasing regulatory clarity across the globe. A new industry report, co-authored by digital asset liquidity provider Block Street, cryptocurrency exchange BitMart, RWA network Plume, and yield solutions firm Coinchange, argues that the long-anticipated institutional adoption of on-chain assets is finally within reach.
The report, titled “State of Real-World Assets (RWA): Positioning, Regulation, and Institutional Market Outlook,” provides a detailed analysis of how evolving legal frameworks in the United States, the European Union, and key Asia-Pacific markets are creating a more stable foundation for the growth of tokenized assets. It suggests that 2025 marked a turning point, particularly in the U.S., with legislation like the GENIUS Act and CLARITY Act providing the first clear rules for stablecoins and digital assets.
This regulatory momentum, the report contends, is shifting the industry’s focus from navigating legal uncertainties to tackling the next set of critical challenges: building the robust infrastructure needed to support institutional-scale trading and investment. According to the authors, the primary hurdles are no longer regulatory but technical and structural.
“The dialogue around RWA has fundamentally shifted from a question of ‘if’ to one of ‘how fast,’,” a spokesperson for Block Street noted in a statement accompanying the release. The firm, which specializes in providing liquidity for tokenized assets, emphasized that the focus must now be on developing market infrastructure.
The research highlights that “markets perceived as experimental, thinly governed, or overly dependent on small teams struggle to attract durable capital.” For RWA to succeed at scale, the report states, “institutional-scale RWA markets must resemble capital markets—not crypto-native experimentation.”
Among the report’s key conclusions is the prediction that RWA adoption will likely concentrate around established, regulated financial institutions that are better positioned to meet compliance standards. It also identifies the development of compliant stablecoins as a critical factor for determining market depth and liquidity.
However, significant challenges remain. The report points to “liquidity fragmentation, custody-settlement integration gaps, and immature risk management infrastructure” as the primary obstacles holding back institutional capital. Furthermore, it warns that until there is absolute legal certainty regarding ownership and creditor rights for assets on a blockchain, these “enforceability gaps remain a structural constraint on institutional participation.”
Despite these hurdles, the authors argue that the underlying economic incentives for institutions are powerful. The ability to use a single tokenized asset for multiple purposes—such as collateral, yield generation, and derivatives—creates a level of capital efficiency that traditional financial systems cannot match.
As the digital and traditional asset worlds continue to converge, the development of this new financial plumbing will be a critical story to watch. The success of firms like Block Street and its partners in building out this infrastructure may well determine the pace and scale of the tokenization revolution.
