Trump-era policies may fuel tokenized real-world assets surge
Tokenization of real-world assets (RWA) is a focus for traditional finance firms seeking to connect with decentralized finance (DeFi), enhancing liquidity, accessibility, and transparency. Eli Cohen, general counsel of Centrifuge, anticipates increased demand for diverse tokenized products by 2025, driven by the need for higher yields. High Treasury rates and competition among stablecoin issuers are pushing the market towards safer, higher-yield investments. Cohen expects the Trump administration to reverse restrictive policies, fostering RWA market growth and opening banking channels for new tokenized products. He predicts a more favorable regulatory environment post-Gensler at the SEC, potentially easing TradFi firms' resistance to crypto. Progress in RWA tokenization is already evident, exemplified by a $1 billion deal between Mantra and Damac to tokenize assets in the Middle East. Security concerns related to crypto are expected to diminish as service providers mature.
