Benefits of Asset Tokenization

This is big news. Tokenization is fast becoming the next battleground for financial infrastructure. Goldman Sachs and BNY Mellon just made one of the boldest moves yet. Tokenization transforms real-world assets into digital tokens - unique, programmable representations of value that can be transferred, tracked, and embedded into automated financial workflows. Goldman Sachs and BNY Mellon are turning traditional money-market funds (MMF) into digital tokens. These funds - a $7.1 trillion global market managed by firms like BlackRock, Fidelity, and Federated Hermes - are commonly used by companies and asset managers to hold short-term cash in safe, interest-earning instruments like Treasury bills and commercial paper. But behind the scenes, they still run on decades-old infrastructure, full of manual steps, cut-off times, and delayed settlements. Tokenization changes that. 𝗛𝗼𝘄? By bringing the same speed, transparency, and automation we expect from modern payments and applying it to financial instruments that haven’t evolved in decades. ·      Instant settlement: Instead of waiting hours (or days) for trades to clear, tokenized assets can settle almost instantly - 24/7, without cut-off times. ·      Programmability: Rules and logic (e.g., eligibility checks, compliance constraints) can be embedded directly into the token - reducing manual oversight. ·      Fractional ownership: Investors can hold smaller, more flexible portions of a fund, which is hard to do in traditional structures. ·      Real-time tracking: Every transfer or ownership change is recorded transparently on a blockchain, improving auditability and risk management. ·      Easier collateralization: Tokenized fund shares can be pledged as collateral or moved between counterparties far more efficiently - a big advantage in treasury and liquidity management. 𝗛𝗼𝘄 𝘁𝗵𝗲 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝘄𝗶𝗹𝗹 𝘄𝗼𝗿𝗸: ·      BNY Mellon will distribute tokenized money-market funds to institutional clients via LiquidityDirect - its cash management platform that helps treasurers and asset managers invest short-term liquidity. ·      Goldman Sachs will record and track ownership of the fund tokens on its private blockchain, providing speed, traceability, and operational efficiency. ·      The offering will support tokenized versions of funds managed by major players like BlackRock, Fidelity, and Federated Hermes. 𝗪𝗵𝘆 𝗻𝗼𝘄? The new U.S. Genius Act gives legal clarity for stablecoins and tokenized assets -removing regulatory uncertainty and unlocking tokenization across mainstream finance. 𝗪𝗵𝗮𝘁’𝘀 𝗻𝗲𝘅𝘁? This could reshape expectations around liquidity, treasury operations, and how financial assets are managed and settled. Custodians and asset managers will need to adapt. Tokenized Treasuries, equities, and real estate are already being tested. Opinions: my own, Graphic source: CNBC 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

The $100 trillion wealth explosion nobody is talking about. Here's how tokenization is creating the biggest wealth transfer in history: Our financial system has a hidden problem. Of $230 trillion in global securities, only about 11% can be used as collateral. The rest is locked up in inefficient legacy systems. What's changing the game? Tokenization of Real World Assets (RWAs). This transforms physical assets like real estate, commodities, stocks, and art into digital tokens on blockchain. Currently, only $15.19B of RWAs are tokenized. By 2030, experts project this will reach $10 trillion. Traditional markets suffer from: • Multi-day settlement periods • High transaction costs • Limited trading hours • Geographic restrictions • Complex intermediaries Tokenization eliminates these barriers with: • Instant settlement • Minimal costs • 24/7 trading • Global access • Automated smart contracts The most revolutionary aspect is democratized ownership. Anyone can now invest in premium assets with as little as $100: • Fractional ownership in luxury hotels • Shares of fine art collections • Stakes in prime real estate • Portions of natural resource projects Major institutions are already moving in. BlackRock launched BUIDL, the largest tokenized fund on Ethereum. The European Investment Bank issued its first digital bond via HSBC's Orion platform. Central banks worldwide are developing tokenized bond systems. We're witnessing a financial transformation that will: • Dramatically enhance market efficiency • Provide broader access to investments • Create unprecedented transparency • Significantly increase liquidity for previously illiquid assets By 2030, tokenized assets will dominate markets. Activating $100 trillion in previously idle capital will create the largest wealth transfer in history. The infrastructure supporting this revolution grows stronger each day. Those who understand this shift early will position themselves for extraordinary opportunities. The future of finance isn't just digital – it's tokenized. Thanks for reading! You're awesome! Follow me for more insights on the future of finance and technology. I'm Graham – former Google product builder ($2B+ revenue), author, and entrepreneur currently working on bravaxyz for secure, effortless stablecoin yields.

Visa and Mastercard are giving away free money, and 99% of merchants are ignoring it. I have talked about it several times...but it is still the number one question I get from merchants. Should they use Network Tokens, or is it just another way to charge them extra for the same transaction. This is what I tell them... Network tokenization isn't just a security upgrade. It's a revenue opportunity hiding in plain sight. Visa's data shows that token transactions deliver a 4.6% rise in authorization rates globally compared to PAN transactions. Even Fiserv reports that merchants see an average 2.1% authorization uptick when using network tokens instead of primary account numbers. The fraud reduction numbers are even more striking. According to Visa's data token-based transactions drive a 30% reduction in fraud online versus PAN. When merchants use Visa-issued network tokens, fraud rates decline by an average of 26%. That's not just cost savings. It's customer trust protection. The automatic update feature solves a $20 billion problem most merchants don't realize they have. When cards expire or get reissued, traditional stored credentials fail. Network tokens get dynamically updated in real time to ensure credentials are always current. No more subscription churn from expired cards. No more failed recurring payments. Another benefit of using Visa's network tokens, is that interchange rate is up to 10 basis points lower than non-tokenized rates on qualifying transactions. For a merchant processing $100M annually, that's $100,000 in direct savings. Before counting the revenue from fewer declines. Yet most merchants still send raw PANs through their payment stack. They're paying higher interchange, accepting lower authorization rates, and losing customers to preventable payment failures. All while the networks are literally incentivizing them to switch. Microsoft's Director of Global Payments puts it perfectly: tokens provide "less opportunity for transactions to be declined because of stale credentials." Better churn stats. Inherently safer transactions. The infrastructure exists today. Most PSPs support network tokenization, and orchestrators such as IXOPAY have it build into their platform. The question isn't technical capability. It's whether you're leaving money on the table while competitors optimize their payment stack. What's your current network token adoption rate? P.S. Check out my newsletter for more Payments Strategy https://lnkd.in/e6eXZrF9

Tokenization converts real-world assets such as real estate, art, or financial instruments into blockchain-based tokens, making them divisible, tradable, and accessible on a global scale while creating new opportunities for investors and asset owners. Tokenization of real-world assets works through the legal representation of a physical or financial item as a blockchain token. Each token can be issued, bought, or transferred, and ownership is recorded transparently through smart contracts. This process increases liquidity, allows fractional participation in valuable assets, and extends market access across borders. At the same time, it raises challenges related to regulatory frameworks, custodianship, and technical risks connected with digital infrastructure. Projects such as Ethereum, Chainlink, and Securitize provide the technological and operational layers that make this model possible, combining secure data management with compliance and efficient trading. #CryptoExplained #Tokenization #Blockchain #DigitalAssets #RWA #SmartContracts

Payment Tokenization Explained If you’re handling payments in 2026, understanding tokenization is a must. Here's what caught my attention: 62% of merchants and 92% of financial institutions already use tokenization. But many teams still aren't clear on how it works or why it matters for their business. ____ What is Payment Tokenization? Think of it as a security swap. Instead of storing actual credit card numbers (like 4532-1234-5678-3511), you store a random token (like 4532-8716-5413-2416). That token links to the real payment details stored in a secure, PCI-compliant vault. When you process a transaction, you send the token. Your payment provider swaps it for the real card details behind the scenes. Simple concept, massive implications. ____ Why It Matters -> Security: If you're breached, hackers get worthless tokens, not card numbers. The token can't be reverse-engineered. -> PCI Scope Reduction: Tokens can reduce your PCI compliance scope by up to 90%. Less data = less liability. -> Faster Checkouts: Returning customers do not need to re-enter their payment details. The friction disappears. -> Multi-Processor Freedom: With the right tokenization strategy, you're not locked into a single payment provider. ____ The Three Types of Tokens This is where it gets interesting: 1. PSP Tokens: Issued by your payment service provider. Great for getting started, but they lock you to that provider. 2. Network Tokens: Created by card networks (Visa, Mastercard, Amex). They boost authorization rates and reduce interchange fees, but require network-specific integrations. 3. Merchant Owned or Universal Tokens: Provider-agnostic tokens that work across all your processors and channels. Maximum flexibility, zero vendor lock-in. Most sophisticated merchants combine universal and network tokens strategically based on their infrastructure and goals. ____ Whether you're scaling globally, managing subscriptions, or trying to reduce fraud, tokenization is foundational infrastructure. The question isn't whether to implement it, but how to do it right for your specific use case. The payments landscape has shifted from single-processor setups to multi-processor strategies. Independent tokenization is what makes that transition possible without creating a data management nightmare. 👉 Subscribe for more insights https://lnkd.in/d94JgWBU #paymenttechnology #fintech #tokenization

When you buy a stock or a bond, do you know which database that transaction is running on? I’m sure the answer is no, but the database will change & that has far-reaching implications. data via Allium Blackrock’s tokenized Treasury fund, BUIDL, has amassed $2b of treasuries so far, with a recent significant surge. This fund is still a bit smaller than BlackRock’s classic Treasury Fund BYTXX at $21b. Tokenized assets, stocks and bonds on blockchains, are at just the beginning. Larry Fink, CEO of BlackRock, said : “Every stock, every bond, every fund — every asset — can be tokenized,” Fink said. “If they are, it will revolutionize investing. Markets wouldn’t need to close. Transactions that currently take days would clear in seconds. And billions of dollars currently immobilized by settlement delays could be reinvested immediately back into the economy, generating more growth.” Why benefits does tokenization provide an investor? If I buy a share in the standard Treasury fund, I receive my interest every month. If I buy the same Treasury through BUIDL, I receive the interest every day. When I sell BUIDL, I receive my proceeds immediately. I can pledge my Treasuries and borrow against them as collateral to invest or buy a house. While treasuries represent the first major success in tokenization, the potential transformation extends into stocks. Stocks haven’t been tokenized at any meaningful scale yet. Coinbase is rumored to be exploring this. Setting aside regulatory concerns, most of the mechanisms necessary to tokenize stocks exist : owning a token empowers a shareholder to vote ; dividends are distributed in-kind (which also occurs in classic equities markets). One wrinkle is that most equities don’t trade across venues : buying Google stock is limited to one exchange. Should tokenized equities become normalized especially with a more crypto friendly SEC, provide a pathway for startups to go public with far less regulatory overhead, a fraction of the $15-25m in costs, and with a much broader reach of potential investors because token markets are global. The database that records your financial transactions might seem like an invisible technical detail, but as assets move to blockchain databases, the implications for investors, startups, & the entire financial system will be profound & hugely positive.

My recent article on : The Business of Liquidity: Stablecoins, Tokenized MMFs, and the Velocity of Finance The thesis I’ve been exploring sits at the intersection of monetary policy, technology, and the business models that support or disrupt financial structures. Do tokenized assets—like tokenized T-bills, money market funds (MMFs), or stablecoins—actually create new liquidity, as many RWA and token projects claim through promises of fractionalization and accessibility? Or is this simply a shift in modality—one that enables liquidity expansion through programmability, composability, and greater market access? My inference from my research, Tokenization doesn’t reinvent liquidity — it redeploys it with greater precision and velocity. Tokenized MMFs and T-bills improve capital efficiency by collapsing traditional settlement layers and enabling intraday recycling. Liquidity savings translate into liquidity provisioning, where assets are no longer dormant between transactions but remain active, pledged, or mobilized. For market makers, treasurers, and on-chain fund operators, this is a paradigm shift: one where yield-bearing instruments can double as collateral, and where programmable liquidity changes how institutions think about cash. #TokenizedFinance #Stablecoins #LiquidityProvisioning #DigitalAssets #ProgrammableLiquidity #MarketStructure #Tokenization #OnChainFinance #AssetTokenization #CapitalEfficiency #TokenizedMMF #RealWorldAssets #FintechInnovation #InstitutionalDeFi #FinancialInfrastructure #CollateralMobility #ModernMarkets #DeFiEvolution #StablecoinAdoption #ProgrammableMoney

In their The Economist article, BlackRock CEO Larry Fink and COO Rob Goldstein herald #tokenization as #finance’s most exciting #innovation since double-entry bookkeeping, likening it to the #internet’s nascent 1996 phase or to SWIFT’s 1977 arrival that slashed settlement times from days to minutes. Tokenization, powered by #blockchain, promises the next leap: instantaneous, secure #asset transfers on digital ledgers. Once overshadowed by #cryptocurrency speculation, tokenization now surges, with tokenized financial assets growing 300% in 20 months. It enables atomic settlement—simultaneous asset and payment exchanges—reducing risks, costs, and errors. Benefits include broader access to illiquid assets like real estate or art via fractional ownership, 24/7 #trading, and programmable smart contracts for automated compliance. Collaboration between incumbents (e.g., banks) and #digital innovators will drive adoption, but success hinges on regulation, interoperability, and safeguards against hacks. Fink and Goldstein envision a hybrid system blending traditional and blockchain infrastructure, democratizing markets and unlocking trillions in value. However, challenges persist: scaling beyond pilots, ensuring cross-chain compatibility, and building investor #trust. As adoption accelerates, tokenization could redefine global finance by 2030, fostering efficiency and #inclusion. My View: We are in the midst of this revolution. Tokenization isn’t a #future promise—it has already profoundly reshaped finance today, with trillions in monthly transactions proving its viability. BlackRock’s BUIDL fund, a tokenized money market yielding USD returns on-chain, $2.3 billion in assets under management since March 2024, dominating U.S. tokenized products. Franklin Templeton’s on-chain fund manages over $400 million, offering 24/7 liquidity. Stablecoins like Tether (USDT) and Circle’s USDC exceed $200 billion combined market cap, enabling instant cross-border payments. Goldman Sachs, J.P. Morgan , and Broadridge process trillions monthly via tokenized collateral, slashing settlement times. TradeFlow ’s $100 million tokenized commodity fund boosts accessibility for insured trades. The International Monetary Fund (IMF) recognizes tokenization’s potential to address financial market inefficiencies across asset lifecycles, enhancing transparency and cutting frictions through programmable ledgers, though it cautions on amplified volatility, fragmentation risks, and the need for robust oversight to prevent flash crashes. The European Central Bank (ECB) is advancing tokenization via initiatives like Pontes and Appia, aiming to create a unified European ledger for settling tokenized assets in central bank money, fostering a digital capital markets union with 24/7 interoperability. #fintech #investing #strategy

"At the heart of this vision [of the next-generation #monetary_and_financial_system] is the concept of #tokenisation, the process of recording claims on real or financial assets that exist on a traditional ledger onto a #programmable_platform.   #Tokenisation represents the next logical progression in the evolution of the monetary and financial system, as it enables the integration of #messaging, #reconciliation and #asset_transfer into a single, seamless operation.   Its potential lies in its ability to knit together operations encompassing money and other assets that would reside on the same programmable platform.   This could be made possible by a new type of financial market infrastructure – a "#unified_ledger" – which may or may not use #distributed_ledger_technology (DLT). By bringing together tokenised #central_bank_reserves, #commercial_bank_money and financial assets into the same venue, a unified ledger can harness tokenisation's full benefits.   Tokenisation is poised to both improve the old, by overcoming the frictions and inefficiencies of the current architecture, and enable the new, by opening up new #contracting possibilities. In #cross_border_payments, tokenisation could replace the #complex_chain_of_intermediaries and the sequential updating of accounts in today's correspondent banking transactions with a #single_integrated_process.   Together with state-of-the-art #compliance_tools made available on the platform, tokenisation would thereby reduce #operational_risks, delays and costs. Similarly, it would enhance capital markets by enabling the contingent execution of actions in terms of #collateral_management, margining adjustments and delivery-versus-payment arrangements."   — From: #BIS (Bank for International Settlements), The Next-Generation Monetary and Financial System (Chapter III), Annual Economic Report 2025, June 24, 2025   The full document is here: https://lnkd.in/eJZXBY9R

For too long, wealth-building opportunities like real estate, stocks, and venture investments have been out of reach for most people. Traditional finance favors those with capital, credit history, and the right connections. But what if access to wealth creation didn’t depend on where you were born, who you know or how much money you started with? Blockchain and tokenization are changing the game. Platforms like RedSwan Digital Real Estate — which is built on the Hedera blockchain — now allow fractional ownership of commercial real estate. You no longer need millions to invest in high-value properties. Tokenization is breaking down barriers, offering: ✅ 𝗟𝗼𝘄𝗲𝗿 𝗲𝗻𝘁𝗿𝘆 𝗽𝗼𝗶𝗻𝘁𝘀 – Invest in assets for a fraction of the cost. ✅ 𝗚𝗿𝗲𝗮𝘁𝗲𝗿 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 – Sell or trade ownership more easily. ✅ 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 & 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆 – Blockchain ensures records are clear and verifiable. This is more than financial innovation. It’s financial empowerment. For many unbanked and underbanked individuals, asset ownership was never an option. Tokenization changes that. By enabling more people to invest in real-world assets, we’re building a path toward financial security for everyone. Wealth doesn’t have to be exclusive. In the future, finance should be open, accessible, and decentralized.