Bank of America: Tokenization of Real-World Assets Accelerating Amid Infrastructure Shift
Investor interest in tokenizing real-world assets (RWAs) such as equities, bonds, and real estate is rising sharply, Bank of America (BAC) said in a research note published Monday. While stablecoins continue to dominate blockchain-based financial infrastructure, the bank’s recent discussions with institutional clients reveal a growing focus on RWA digitization.
This shift signals the early stages of a broader, multi-year transition toward blockchain-native financial systems, the report said. Key benefits driving investor engagement include 24/7 market access, instant settlement, global interoperability, and automated compliance via smart contracts.
Tokenization brings traditional assets on-chain, enabling fractional ownership, greater accessibility, and improved liquidity. Bank of America cited the Dubai Land Department’s recent initiative as a notable example: a tokenized real estate platform aiming to digitize up to $16 billion in property by 2033, while enabling retail-scale participation through fractional shares.
The report also addressed concerns from investors about potential disruption to traditional financial firms—particularly Citi (C), whose transaction services business generates roughly 40% of its profits. However, Bank of America noted that Citi’s expertise in blockchain may be underappreciated and could position the bank to adapt rather than lose ground.
Overall, BAC framed tokenization as a pivotal development in the maturation of blockchain finance, one that could reshape the infrastructure of capital markets and challenge long-standing revenue models.
