RWA Industry Faces Reality Check: Not All Growth Is Real

🔍 RWA bubble bursting

By Polygon
Nov 10, 2025, 3:59 PM
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Real-World Asset tokenization needs a reality check, according to Polygon Labs' Global Head of Payments & RWAs.​

The RWA revolution requires three critical foundations:

  • Verifiable assets with proven ownership
  • Clear regulatory frameworks for compliance
  • Actual usage beyond speculation

Current challenges include:

  • Many projects lack real substance behind growth claims
  • Tokenizing assets like US Treasuries offers no competitive moat
  • Missing infrastructure for custody, trading, and redemption

Real estate emerges as the sweet spot for tokenization due to high value, illiquidity, and suitability for fractional ownership.​

Key insight: Intermediaries won't disappear - they'll evolve.​ Winners will be protocols embedding KYC, legal logic, and risk scoring into smart contracts.​

The bottom line: Programmable finance must be matched with programmable trust.​ Without verified data and legal enforceability, blockchain remains "code floating in a vacuum.​"

Read the full analysis: Cointelegraph Op-Ed

Sources
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