Matt Hougan, the chief investment officer (CIO) of crypto asset management firm Bitwise, is predicting an explosion in the tokenization of traditional assets.
In a new blog post, Hougan says that the transition of stocks, bonds and other real-world assets (RWAs) onto blockchains instead of traditional systems may happen much quicker than he previously thought.
“I still think it will take more than a decade before the majority of stock and bond trading happens on-chain. But with major financial firms like Robinhood and Tradeweb positioning themselves for the transition today, I’ve started to wonder: could tokenization achieve 1-5% penetration in a few years? Could a dozen major pilot projects lift us to that level of market penetration?
It seems possible, and it would translate into trillions of dollars … more than any other crypto application or asset, including Bitcoin.
The narrative around tokenization is only going to accelerate from here – if Robinhood is rolling out tokenized trading, you can bet that Charles Schwab and others are studying it aggressively. I’d expect a wave of additional announcements this fall.”
Hougan names several crypto projects that could give investors exposure to an RWA tokenization boom.
“The cleanest way to invest in the rise of tokenization is to buy a basket of the top layer-1 blockchains and infrastructure plays: Ethereum, Solana, XRP, Chainlink, etc.”
Hougan also notes how Larry Fink, CEO of BlackRock, highlighted the massive growth potential for tokenization of RWAs in his 2025 annual shareholder letter, saying, “Every stock, every bond, every fund – every asset – can be tokenized.”
If Larry Fink is right, Hougan says the “tokenization market could grow over 4,000x in the coming years.”
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