The rapidly evolving regulatory landscape for cryptocurrencies is encouraging companies across various sectors to integrate blockchain technology, with tokenized real-world assets (RWAs) gaining unprecedented attention. The anticipated passage of comprehensive crypto regulations is poised to trigger a significant influx of traditional Web 2.0 firms and financial institutions into the RWA sector. But why exactly are established banking giants and crypto exchanges focusing on crypto-backed RWAs, and which industries and digital assets stand to gain the most? Let’s delve deeper.
Crypto Exchanges Lead the Charge
Among the frontrunners embracing tokenized real-world assets are crypto exchanges, naturally positioned due to their existing user bases and digital infrastructure. Take Coinbase, for instance—a leader in the industry. Earlier this year, Coinbase announced plans to offer tokenized versions of its own "coin stock" on its layer 2 blockchain, named Base. The company’s developer Jesse Pollock expressed ambitions that "every asset in the world will be on Base," contingent on clearer regulatory frameworks.
Subsequently, Coinbase expanded its vision to include tokenized equities more broadly, actively seeking approval from the U.S. Securities and Exchange Commission (SEC) to offer a range of tokenized stocks. This move would allow Coinbase to directly compete with platforms like Robinhood, which itself has submitted detailed proposals to the SEC to establish regulatory parameters for tokenized assets.
Robinhood's plans include creating a real-world asset exchange (RRE) that combines fast off-chain trade matching with blockchain-based settlement, utilizing a dual-chain architecture incorporating Solana and Base blockchains. This system promises to process transactions at lightning speeds, significantly boosting the efficiency and appeal of tokenized securities.
Meanwhile, Kraken, a veteran crypto exchange, is preparing to offer tokenized versions of major U.S. stocks like Tesla and Apple to international clients, issued on the Solana blockchain under the "XStocks" token brand. Such initiatives further underline the growing appetite among retail and institutional investors for tokenized securities, which market analysts predict could reach a $1 trillion market capitalization in the near future.
Banking Sector’s Increasing Involvement
While crypto-native exchanges spearhead the tokenized asset trend, traditional mega banks are making groundbreaking strides into this domain, signaling wider institutional adoption.
JP Morgan stands out as a trailblazer by becoming the first major global bank to connect its core payment system to a public blockchain in May 2025. The milestone transaction involved tokenized U.S. Treasuries settled on Finance’s Onondo Chain, utilizing Chainlink to bridge private and public networks. This event was a pivotal moment for JP Morgan’s digital asset platform, Kexus, designed to blend traditional finance (TradFi) with decentralized finance (DeFi) mechanisms.
JP Morgan soon followed up with the launch of JPMD, a novel "deposit token" that functions similarly to a stablecoin but represents digital commercial bank deposits. Available exclusively to institutional clients via permissioned tokens on the Base blockchain, JPMD offers continuous 24/7 availability and pays interest—features that could drive substantial institutional adoption.
Coincidentally, JPMD’s announcement coincided with an SEC memo revealing meetings with JP Morgan to discuss capital market activities using public blockchains. While specifics remain undisclosed, it is plausible that tokenized collateral was a significant discussion topic, given regulators’ focused interest in this area. Notably, JP Morgan's hybrid approach—leveraging private permissioned blockchains alongside public chains—suggests an ongoing effort to balance security, compliance, and interoperability.
Other Banking Giants Join the Movement
JP Morgan isn’t alone in exploring crypto-backed RWAs. Bank of America (BOA) has expressed intentions to launch its own stablecoin, contingent on the establishment of clear U.S. regulations for such digital assets. In May 2025, BOA reportedly held talks with JP Morgan, Citigroup, and Wells Fargo about potentially launching a joint stablecoin, illustrating a collaborative approach among banks toward industry-wide innovation.
Citigroup’s parent company has also partnered with Switzerland's SIX Digital Exchange (SDX) to tokenize late-stage private shares, aimed at improving efficiency in the private market. By leveraging SDX’s blockchain-based central securities depository (CSD), this initiative underscores a strategic move to streamline private securities transactions and broaden market access.
Why This Matters: The Future of Finance
The convergence of crypto and traditional finance through tokenized real-world assets indicates a fundamental transformation in how assets are represented, traded, and settled. Tokenization promises to reduce costs, increase liquidity, and enhance transparency for a wide range of assets—from stocks and treasuries to private equity.
For institutional investors and major banks, the benefits are clear: faster settlement times, continuous market access, and the ability to innovate within a regulated framework that balances security and compliance.
For retail investors, tokenized RWAs could democratize access to traditionally illiquid or high-barrier investments, fostering broader financial inclusion.
On the crypto front, exchanges expanding into tokenized stock offerings may experience increased user engagement and trading volumes. Cryptocurrencies linked to blockchains that support these tokens—such as Solana and Base—are likely to see growth due to heightened demand for their infrastructure and native tokens.
Conclusion
As regulatory environments stabilize and mature, the involvement of major banks and financial institutions in crypto-backed real-world assets will likely intensify, heralding a new era of hybrid finance. Crypto exchanges continue to innovate with tokenized securities, laying the groundwork for a trillion-dollar market crossover.
The strategic moves by JP Morgan, Bank of America, Citigroup, and others reflect growing confidence in tokenization’s potential to revolutionize asset management and trading. This evolution not only reshapes the business models of legacy financial institutions but also opens exciting possibilities for investors seeking more efficient, accessible, and transparent asset ownership.
Understanding these developments is crucial for anyone navigating the future of finance and crypto investments. The rise of tokenized real-world assets is no longer just a concept—it’s rapidly becoming the new normal in global financial markets.
By Wolfy Wealth - Empowering crypto investors since 2016
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Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile.
