Tokenization and RWAs will shape the next market cycle, I have no doubt about that.
But the important part is not in tokenizing assets, it is in knowing which assets should never touch a blockchain.
Tokenization is a distribution layer, not a value creation engine.
If the underlying asset lacks predictable cash flow, legal enforceability, jurisdictional clarity, or robust governance, putting it on chain only accelerates its failure.
We already lived through this lesson in TradFi with structured products, where complexity masked risk instead of removing it.
The technical work starts with asset selection.
You need clean title, auditable reserves or production, transparent revenue mechanics, and a legal structure that survives stress scenarios, insolvency, and cross border enforcement.
Without this, smart contracts are just automated uncertainty.
RWAs succeed when tokenization reduces friction without weakening trust.
That means deterministic settlement, on chain transparency for supply and flows, and off chain legal frameworks that are aligned, not abstracted away.
The bridge between law and code is where most projects break.
The future of tokenization is not about volume, it is about credibility.
Capital does not chase novelty, it migrates toward structures that preserve value across cycles.
In my view, the real RWA opportunity sits in assets with long duration relevance, scarce supply, and monetary or productive utility.
Tokenization should make these assets more accessible, more liquid, and easier to audit, not more fragile.
This is not a race to tokenize the world.
It is a discipline of curating reality for the chain.
