Real-World Asset Tokenization Picks Up Speed, According to BofA

Bank of America: Tokenization of Real-World Assets Is Entering a New Phase

Investor interest is shifting from stablecoins to the tokenization of real-world assets (RWAs), according to a new report from Bank of America (BAC). The bank noted that recent discussions with clients reveal growing momentum behind efforts to bring traditional assets like equities, bonds, real estate, and deposits onto blockchain infrastructure.

While U.S. dollar-backed stablecoins still dominate headlines, the report suggests that tokenization represents a longer-term structural evolution, laying the foundation for global, always-on financial markets with real-time settlement and programmable compliance via smart contracts.

“Tokenization of real-world assets is not just a concept anymore — it’s increasingly becoming part of investor roadmaps,” BofA analysts wrote, describing the development as the beginning of a multi-year shift toward fully blockchain-based financial operations.

Tokenization allows traditional assets to be represented digitally on a blockchain, making them more accessible, easier to trade, and open to fractional ownership. One high-profile example cited was the Dubai Land Department’s recent initiative to tokenize up to $16 billion in real estate assets by 2033. The project is expected to expand investor access to property markets through fractionalized, blockchain-based ownership models.

The trend also raises questions about potential disruption to existing financial institutions. Bank of America flagged investor concerns about Citi’s (C) transaction services business, which contributes about 40% of its bottom line. However, the bank believes Citi’s blockchain capabilities may offer a strategic advantage, rather than a liability, as tokenized systems mature.

While infrastructure hurdles remain, BofA sees the tokenization push as a key milestone in blockchain adoption, with broad implications for how capital moves through global markets.