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Tokenization of Real-World Assets is Gaining Momentum, Says Bank of America
Discussions with investors show a growing focus on the tokenization of real world assets, including stocks, bonds, and real estate.
Aug 1, 2025, 12:59 p.m.
What to know:
- Tokenization of real-world assets is gaining traction, according to a report from Bank of America.
- The bank said it is a multi-year journey towards blockchain adoption.
- The Dubai Land Department's new platform, expected to digitize $16 billion in real estate by 2033, introduces fractional ownership and further advances the tokenization of real estate, the report noted.
While U.S. dollar-backed stablecoins continue to dominate the conversation, recent discussions with investors indicate a growing focus on the tokenization of real world assets (RWAs), including stocks, bonds, bank deposits, and real estate, Bank of America (BAC) said in a report Monday.
According to BofA, this shift marks the beginning of a multi-year journey toward fully blockchain-based transactions.
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The transformation will require significant infrastructure development but promises a new era of 24/7 access across global jurisdictions, instant settlement, and enhanced liquidity, all underpinned by smart contracts that ensure compliance, the report said.
Tokenization of real-world assets on a blockchain involves bringing traditional assets like real estate, bonds, and commodities into the digital realm. This process allows for fractional ownership, easier trading, and increased accessibility of these assets.
A notable example of this evolution is the recent launch of a tokenized real estate platform by the Dubai Land Department (DLD), the bank's analysts said.
This initiative, which aims to digitize up to $16 billion in real estate by 2033, will also introduce fractional ownership, broadening access to a previously illiquid asset class, the analysts noted.
Bank of America said a recurring concern among investors has been the potential disruption to Citi's (C) transaction services business, which accounts for around 40% of the bank’s bottom line, as blockchain technology gains traction.
While the risk of disruption to traditional revenue streams, such as net interest income from deposits or fees, remains a possibility, there’s a growing belief that investors may be underestimating Citi’s expertise and adaptability in blockchain technology, BofA said.
The push for tokenization signals a significant milestone in the adoption of blockchain technology for real-world applications, the report added.
Read more: Stablecoin Supply to Grow as Much as $75B Following Passage of GENIUS Act, BofA Says
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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