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Why Asset Tokenization Is the Bridge Between Traditional Finance and Web3?

  • Writer: Lara Hanyaloglu
    Lara Hanyaloglu
  • Jul 11
  • 4 min read

Updated: Jul 17

Tokenizing real-world assets (RWAs) offers benefits like fractional ownership, faster liquidity, and immutable transparency. Yet technical, legal, and identity hurdles remain. Leaders from BlackRock, Blackstone, and emerging players like Backed Finance, highlight both promise and caution in this transformative shift.


1. What Is Asset Tokenization?

Asset tokenization transforms ownership of RWAs, such as real estate, bonds, equity, into digital tokens on a blockchain. Each token represents a fractional share, enabling 24/7 trading, enhanced liquidity, and transparent, verifiable ownership on-chain.


2. Key Benefits for Investors & Markets

  • Fractional ownership makes high-value assets accessible to a broader range of investors.

  • Improved liquidity lets traditionally illiquid assets be traded more freely.

  • Transparency and immutable records foster trust and auditability.

  • Faster settlement cuts legacy infrastructure delays through near-instant, blockchain-based transfers .


3. Voices from the Top: Industry Perspectives

Larry Fink, CEO of BlackRock

  • Describes tokenization as the “next generation for markets”, imagining every bond and stock with its own token on a unified ledger, enabling instant settlement and reducing illicit activity.

  • Stated he’s “a huge believer in crypto” and urged the SEC to rapidly approve tokenization of bonds and stocks to democratize investment.

Stephen Schwarzman, CEO of Blackstone

  • Calls crypto as money “pretty odd”, but supports blockchain for non-monetary uses, saying “blockchain technology applied to non‑tradable currencies… is clearly a good thing” .

Adam Levi, Co-founder at Backed Finance

  • At launch of xStocks, said:

    “By bringing familiar assets onto the blockchain with unprecedented accessibility, we are not just bridging traditional finance and DeFi; we are building the foundational blocks for a truly open, efficient, and inclusive global financial system where everyone can participate in wealth creation.


4. New Wave: Backed Finance & xStocks on Major Platforms


On June 30, 2025, Backed Finance launched xStocks, debuting over 60 tokenized stocks and ETFs, available on Bybit, Kraken, and multiple Solana DeFi protocols.

  • The xStocks offering includes major tickers like Apple, Microsoft, Tesla, SPY and NVDA, and can be traded 24 hours/5 days, bridging centralized and decentralized platforms via Solana’s liquidity pools.

  • Each token remains 1:1 backed by real shares, redeemable for cash value, ensuring price parity with underlying assets.

  • Integrated into DeFi apps such as Raydium, Kamino, Jupiter, allowing holders to swap, lend, or provide liquidity with tokenized stocks.

This step marks a maturation from theoretical RWA tokenization to real-world deployment, supported by substantial infrastructure.


Dinari’s U.S. Breakthrough

  • On June 26, 2025, San Francisco‑based Dinari became the first tokenized equity platform to secure a U.S. broker‑dealer registration, paving the way for regulated on‑chain stock trading in the U.S.

  • CEO Gabriel Otte:

    “For me, the end game is … not just a broker‑dealer that’s on chain, but an exchange that's on chain… creating a tokenized stock standard that's actually legal in the United States. No one else can claim that today.”

  • Dinari’s “dShares” currently trade internationally on Coinbase’s Base network. Using API integrations, U.S. brokerages can offer token trading under full regulatory compliance.


Robinhood’s EU Launch & Layer‑2 Blockchain

  • On June 30, 2025, Robinhood introduced tokenized U.S. stock and ETF tokens in the EU (200+ assets, zero commissions, 24/5 trading, dividends supported), issued on Arbitrum, ahead of its own Layer‑2 blockchain rollout. CEO Vlad Tenev said it lays groundwork for crypto as global financial infrastructure. GM Johann Kerbrat added it aims to onboard non-engineers.

  • Also launched crypto perpetual futures in the EU (up to 3× leverage), and staking for Ethereum & Solana in the U.S., along with new platform features and AI tools.


5. Challenges and Regulatory Considerations

Despite momentum, obstacles remain:

  • Legal and compliance issues: Tokens representing securities must adhere to securities laws, KYC/AML, and accreditation protocols.

  • Digital identity systems are needed to ensure governance and track ownership reliably .

  • Custody & auditing: Users need confidence that tokens are fully backed; platforms like Backed use transparent proofs of reserve.

  • Smart contract and liquidity risks: On-chain vulnerabilities and fragmented liquidity across chains and pools remain concerns


6. What This Means for Markets

  • Democratization: Retail and international investors gain access to U.S. equities without traditional brokerages.

  • DeFi integration: Tokenized stocks enable new DeFi use cases, such as collaterized lending, offering innovative financial products

  • Global access: 24/5 trading with lower fees and broader reach, as noted by Kraken for non-U.S. users


I believe asset tokenization is among the most transformative innovations in finance, bridging TradFi and Web3. Backed Finance’s real-world launch and Dinari’s U.S. broker-dealer license are strong indicators of meaningful progress. However, the long-term impact hinges on securing harmonized regulations, establishing robust custody systems, and creating identity frameworks. Without these, tokenization risks remaining a niche innovation rather than core financial infrastructure.



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