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Over the past year, interest in bringing real-world assets
(RWAs) on-chain has grown rapidly. From tokenized U.S. Treasuries to synthetic
equities, the vision is clear: to combine the stability of traditional finance
(TradFi) with the flexibility of decentralized finance (DeFi).
Yet, current RWA implementations often fall short of this
promise. Many exist in legal gray areas, are locked in custodial systems, and
resemble traditional securities more than crypto-native assets. These
structures may live on-chain in code, but they rarely function that way in
practice.
The opportunity, however, is massive. According to the
Boston Consulting Group, tokenized RWAs could reach a value of $16 trillion by
2030. At present, less than $23 billion of RWAs are tokenized on-chain—just a
fraction of the potential.
Institutions are paying attention. BlackRock has
highlighted tokenization as a focus. HSBC is expanding its tokenized product
offerings. The Bank for International Settlements is running pilots with
central banks in the U.S., Japan, and France.
But despite these developments, most RWA infrastructure
today is being built through a TradFi lens: permissioned, centralized, and
difficult to use within DeFi protocols.
DeFi Needs Real-World Exposure
Currently, most DeFi activity centers on crypto-native
assets that are volatile and speculative. Without stable, real-economy assets
like bonds or real estate, DeFi lacks the foundation to attract long-term
capital. Sustainable growth requires more than yield farming—it needs access to
assets that reflect real economic value.
Early tokenization efforts—via synthetic derivatives or
regulated wrappers—struggled to deliver on that promise. They remain siloed,
inflexible, and often unusable within major DeFi protocols like Aave or
Uniswap.
Catch the recording of DeFi Technologies President & @ValourFunds CGO @Forson at @MaximGrp’s 2025 Virtual Tech Conference.
He breaks down our business, our growth strategy, and how we’re bridging TradFi and DeFi. $DEFT $DEFI.NE pic.twitter.com/dHy4TrVE5w
— DeFi Technologies (@DeFiTechGlobal) June 17, 2025
Asset-Referenced Tokens: A Practical Alternative
This is where Asset-Referenced Tokens (AR tokens) present a
promising path. AR tokens are fully backed by real-world assets but are
designed to operate natively within the crypto environment.
Unlike traditional
tokenized securities, they are not weighed down by restrictive custody models
or security classifications. Instead, they align with evolving regulatory
regimes like the EU’s Markets in Crypto-Assets (MiCA) framework, which treats
them as crypto assets.
This approach opens the door for AR tokens to function
across DeFi protocols—used as collateral, traded on decentralized exchanges,
and integrated into composable systems—while remaining compliant and secure.
Designing for Crypto from Day One
DeFi’s long-term success depends on its ability to anchor
itself in the real economy. That requires more than just infrastructure; it
requires assets that reflect the world we live in. The convergence of
regulation , institutional interest, and blockchain maturity has created the
conditions to bring RWAs on-chain in meaningful ways.
But to unlock that potential, tokenized assets must be built
to function like crypto from the outset. AR tokens offer a path forward—not by
mimicking TradFi, but by improving it—laying the foundation for a financial
system that is more open, resilient, and interoperable.
Over the past year, interest in bringing real-world assets
(RWAs) on-chain has grown rapidly. From tokenized U.S. Treasuries to synthetic
equities, the vision is clear: to combine the stability of traditional finance
(TradFi) with the flexibility of decentralized finance (DeFi).
Yet, current RWA implementations often fall short of this
promise. Many exist in legal gray areas, are locked in custodial systems, and
resemble traditional securities more than crypto-native assets. These
structures may live on-chain in code, but they rarely function that way in
practice.
The opportunity, however, is massive. According to the
Boston Consulting Group, tokenized RWAs could reach a value of $16 trillion by
2030. At present, less than $23 billion of RWAs are tokenized on-chain—just a
fraction of the potential.
Institutions are paying attention. BlackRock has
highlighted tokenization as a focus. HSBC is expanding its tokenized product
offerings. The Bank for International Settlements is running pilots with
central banks in the U.S., Japan, and France.
But despite these developments, most RWA infrastructure
today is being built through a TradFi lens: permissioned, centralized, and
difficult to use within DeFi protocols.
DeFi Needs Real-World Exposure
Currently, most DeFi activity centers on crypto-native
assets that are volatile and speculative. Without stable, real-economy assets
like bonds or real estate, DeFi lacks the foundation to attract long-term
capital. Sustainable growth requires more than yield farming—it needs access to
assets that reflect real economic value.
Early tokenization efforts—via synthetic derivatives or
regulated wrappers—struggled to deliver on that promise. They remain siloed,
inflexible, and often unusable within major DeFi protocols like Aave or
Uniswap.
Catch the recording of DeFi Technologies President & @ValourFunds CGO @Forson at @MaximGrp’s 2025 Virtual Tech Conference.
He breaks down our business, our growth strategy, and how we’re bridging TradFi and DeFi. $DEFT $DEFI.NE pic.twitter.com/dHy4TrVE5w
— DeFi Technologies (@DeFiTechGlobal) June 17, 2025
Asset-Referenced Tokens: A Practical Alternative
This is where Asset-Referenced Tokens (AR tokens) present a
promising path. AR tokens are fully backed by real-world assets but are
designed to operate natively within the crypto environment.
Unlike traditional
tokenized securities, they are not weighed down by restrictive custody models
or security classifications. Instead, they align with evolving regulatory
regimes like the EU’s Markets in Crypto-Assets (MiCA) framework, which treats
them as crypto assets.
This approach opens the door for AR tokens to function
across DeFi protocols—used as collateral, traded on decentralized exchanges,
and integrated into composable systems—while remaining compliant and secure.
Designing for Crypto from Day One
DeFi’s long-term success depends on its ability to anchor
itself in the real economy. That requires more than just infrastructure; it
requires assets that reflect the world we live in. The convergence of
regulation , institutional interest, and blockchain maturity has created the
conditions to bring RWAs on-chain in meaningful ways.
But to unlock that potential, tokenized assets must be built
to function like crypto from the outset. AR tokens offer a path forward—not by
mimicking TradFi, but by improving it—laying the foundation for a financial
system that is more open, resilient, and interoperable.
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