Tokenization's Impact on Finance Expected to Surpass Digital Media Disruption

According to Cointelegraph, Keith Grossman, president of crypto payments company MoonPay, predicts that tokenization will revolutionize the financial industry more rapidly than digital technology transformed traditional media. Grossman highlights that while digitization initially sparked fears of media destruction, it ultimately drove evolution. He asserts that real-world asset (RWA) tokenization, which involves representing traditional assets on blockchain, will compel traditional financial institutions to adapt. Grossman points to examples such as BlackRock's tokenized funds and Franklin Templeton's tokenized money market funds on public blockchains, as well as major global banks piloting onchain settlement and tokenized deposits. Financial incumbents like Citi, Bank of America, and JPMorgan Chase are expected to persist in a transformed state, similar to how media companies adapted to digital distribution in the late 1990s and early 2000s. Grossman emphasizes that the companies that will thrive in the shift toward tokenized finance are those that embrace change rather than resist the inevitable transition to a blockchain-powered global financial system. Tokenizing real-world assets offers numerous advantages, including 24/7 market access, global scalability of asset classes, reduced transaction costs through disintermediation, and faster settlement times. In September, the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement on establishing a regulatory framework to facilitate 24/7 capital markets. The majority of tokenized RWA value is currently hosted on the Ethereum network. The transition to 24/7 trading marks a significant shift from traditional markets, which typically close during nights, weekends, and holidays. In December, the Depository Trust and Clearing Corporation (DTCC), a settlement and clearing company that processed approximately $3.7 quadrillion in settlement volume in 2024, received SEC approval to offer tokenized financial instruments. The DTCC plans to introduce tokenized assets in the second half of 2026, beginning with US Treasuries and stock indexes.