Asian Web3 research and consulting firm Tiger Research is advising financial institutions to prioritize gaining practical experience in overseas markets to capture a first-mover advantage in the rapidly growing real-world asset (RWA) tokenization sector, rather than waiting for domestic legislation to catch up. In a report titled Start RWA Tokenization Abroad First, the firm highlights that the global RWA market has already swelled to between $25 billion and $36 billion in the first half of this year, demonstrating clear operational efficiencies such as automated interest payments and significantly shorter settlement periods.
Regulatory Vacuum Creates Uncertainty for Financial Firms
Despite the market’s proven efficiency, Tiger Research notes that financial firms face a significant hurdle: a widespread regulatory vacuum. The report points out that the lack of legal validity for distributed ledger records and inadequate investor protection frameworks create substantial uncertainty for potential participants. This regulatory gap, the firm argues, is a primary barrier preventing traditional financial institutions from entering the tokenization space at scale.
Strategic Pathways: Regulated Markets vs. On-Chain Platforms
To overcome this, Tiger Research recommends that companies consider entering jurisdictions with established regulatory frameworks. Before expanding, firms should conduct a thorough review of key operational requirements, including establishing a local base, securing appropriate licensing, selecting the specific assets to be tokenized, defining target investors, choosing a settlement currency, and setting up custody and operational structures.
The report outlines two primary pathways for market entry. The first involves entering regulated markets such as Hong Kong, Singapore, and the United States, where clear legal frameworks are already in place. The second pathway involves leveraging on-chain native platforms like Ondo ($ONDO) and Plume ($PLUME) to accelerate market entry and bypass some traditional regulatory bottlenecks.
Why This Matters for the Industry
The report underscores that the key to long-term success is not waiting for perfect local regulations but rather accumulating practical operational capabilities through real-world experience. Tiger Research emphasizes that large U.S. financial firms are currently leading the market by either building their own proprietary platforms or gaining direct operational experience on networks like Canton (CC), Solana ($SOL), and Ethereum ($ETH). The firm’s core message is clear: it is crucial to quickly explore available paths rather than waiting for regulations to evolve.
Conclusion
Tiger Research’s analysis provides a pragmatic roadmap for financial institutions looking to enter the tokenization market. By advocating for proactive overseas expansion and hands-on experience, the report challenges the industry to move beyond theoretical discussions and into practical implementation. For firms seeking a competitive edge in the $25–36 billion RWA market, the window of opportunity is open, but it may not remain so for long.
FAQs
Q1: What is RWA tokenization?
RWA tokenization is the process of representing ownership of real-world assets, such as bonds, real estate, or commodities, as digital tokens on a blockchain. This allows for faster settlement, automated payments, and increased liquidity.
Q2: Why does Tiger Research recommend going overseas first?
The firm argues that many domestic markets lack clear legal frameworks for distributed ledger records and investor protection, creating uncertainty. Entering established overseas markets allows firms to gain practical experience and a first-mover advantage while waiting for local regulations to develop.
Q3: Which platforms are mentioned as suitable for market entry?
Tiger Research highlights two main pathways: entering regulated markets like Hong Kong, Singapore, and the U.S., or using on-chain native platforms such as Ondo ($ONDO) and Plume ($PLUME). Major U.S. firms are also building on networks like Canton (CC), Solana ($SOL), and Ethereum ($ETH).
