As the financial landscape evolves with the increasing adoption of blockchain technology, the prospect of tokenized real-world assets (RWAs) has captured the attention of institutions and investors alike. According to predictions by Standard Chartered Bank and Synpulse, RWAs could potentially exceed $30 trillion by the year 2034. However, not all experts share the same optimistic view.
At the recent Paris Blockchain Week 2025, a panel discussion highlighted differing perspectives on the future growth of RWAs. Moderated by Cointelegraph’s managing editor, Gareth Jenkinson, the panel included prominent figures from the tokenization ecosystem, such as Charles Adkins from Hedera and Michael Sonnenshein, the Chief Operating Officer of Securitize.
While many participants expressed confidence in the $30 trillion estimate, Sonnenshein offered a more cautious outlook. A former CEO of Grayscale Investments, he articulated that while there are existing systems for traditional assets, the mere possibility of tokenization does not warrant its necessity. “Just because it can be tokenized doesn’t mean that it should be,” he emphasized, suggesting that the market may not reach such lofty valuations.
“I’ll take the under on the $30 trillion number,” Sonnenshein remarked, underscoring his skepticism.
Despite his reservations about hitting the $30 trillion mark, Sonnenshein maintained a positive sentiment towards RWAs, anticipating substantial growth in investment behaviors as more individuals begin to view their digital wallets not just as places for speculation, but as viable investment vehicles comparable to traditional brokerage accounts.
A Critical Perspective on Real Estate Tokenization
Another significant point of contention raised by Sonnenshein was the viability of real estate as a primary use case for RWAs. He noted efforts in the United Arab Emirates, where governmental initiatives have sought to merge tokenization with real estate markets. A notable example is the partnership between local developer Damac and RWA blockchain Mantra, which aims to tokenize $1 billion worth of real estate assets.
Contrary to these initiatives, Sonnenshein expressed skepticism about the effectiveness of tokenizing real estate. “I don’t think tokenization should have its eyes directly set on real estate,” he declared, highlighting that while efficiencies may be attained through blockchain technology—such as reducing the need for middlemen—this does not necessarily translate into effective representation of ownership.
“What the on-chain economy demands are more liquid assets,” he added, advocating for a focus on assets that would better suit the fast-paced nature of blockchain transactions.
As discussions around tokenization continue to evolve, it remains clear that while the potential for RWAs is significant, a balanced view that considers both opportunities and challenges will be essential as the sector develops.
