The Future of Finance: Why Tokenization Will Speed Up the Revolution?

Tokenization is no longer a theoretical concept discussed only in blockchain research circles. It is now being actively deployed by some of the largest financial institutions in the world, fundamentally changing how assets are issued, traded, and settled.

According to Keith Grossman, President of MoonPay, tokenization will reshape finance faster than digital technology transformed legacy media industries such as newspapers and physical music. His comparison highlights how deeply structural the shift toward blockchain based finance may be.

As real world assets increasingly move on-chain, the financial system is entering a phase where speed, accessibility, and efficiency become default expectations rather than competitive advantages.

Key Takeaways

• Tokenization is expected to disrupt finance faster than digital media disrupted newspapers and music
• Major institutions like BlackRock and Franklin Templeton already operate tokenized financial products
• Tokenization reduces costs, shortens settlement times, and enables 24/7 markets
• Regulatory frameworks are beginning to adapt to always-on financial systems
• Early adopters may gain lasting advantages as finance transitions on-chain

What Is Tokenization in Finance?

Tokenization refers to the process of representing traditional financial assets on a blockchain. These assets can include stocks, bonds, money market funds, real estate, and other real world instruments.

Instead of relying on centralized databases and multiple intermediaries, tokenized assets exist as programmable tokens that can be transferred, settled, and audited on-chain.

This shift changes not only how assets move, but also how markets operate at a foundational level.

Read Also: Real-World Assets (RWA) Tokenization Investment Guide

Why Tokenization Will Disrupt Finance Faster Than Digital Media

The digitization of media forced newspapers and music companies to adapt to online distribution, streaming, and new business models. Tokenization applies a similar pressure to financial institutions, but with even broader implications.

Finance is built on layers of intermediaries, settlement delays, and geographic fragmentation. Tokenization removes or compresses many of these layers.

• Settlement moves from days to minutes
• Markets operate continuously instead of on fixed schedules
• Capital becomes globally accessible by default

Because finance underpins almost every economic activity, changes at this layer propagate faster and more broadly than media digitization ever did.

Institutional Adoption Is Already Underway

Tokenization is not waiting for full regulatory clarity to gain traction. Large financial institutions are already deploying real products on public blockchains.

• BlackRock offers tokenized funds
• Franklin Templeton operates tokenized money market funds
• Major banks are piloting tokenized deposits and on-chain settlement

These developments signal that tokenization is being treated as infrastructure, not experimentation. Institutions are adapting their models rather than resisting the shift.

The real world asset sector, excluding stablecoins, now represents nearly $19 billion in market capitalization, according to RWA.XYZ.

Tokenization Cuts Costs and Accelerates Settlement

One of the strongest value propositions of tokenization is operational efficiency.

Traditional finance relies on clearing houses, custodians, reconciliation processes, and delayed settlement cycles. Tokenized assets reduce this complexity by embedding ownership and transfer logic directly into the asset.

• Settlement times shrink from days to minutes
• Fewer intermediaries lower transaction costs
• Counterparty risk is reduced through atomic settlement
• Capital efficiency improves for institutional investors

These benefits compound as trading volumes increase, making tokenized markets more competitive over time.

24/7 Markets Change Financial Behavior

Tokenized assets operate continuously. Unlike traditional markets that close overnight, on weekends, and on holidays, blockchain based markets remain open at all times.

This structural change alters how liquidity is managed and how risk is priced.

• Assets can be rebalanced in real time
• Global participants access markets without time zone constraints
• Liquidity becomes more responsive to macro events

In September, the SEC and CFTC jointly expressed support for regulatory frameworks that accommodate 24/7 capital markets, signaling alignment with this direction.

Ethereum as the Backbone of Tokenized Assets

Most tokenized real world asset value currently resides on Ethereum. According to RWA.XYZ, Ethereum hosts the majority of tokenized financial instruments today.

This concentration reflects Ethereum’s strengths in security, composability, and institutional familiarity.

While other blockchains may compete on cost or speed, Ethereum has become the default settlement layer for tokenized finance, especially for high value assets.

Regulatory Progress and Remaining Challenges

Despite growing adoption, tokenized finance still faces regulatory and operational hurdles.

• Compliance with global securities laws
• Custody and investor protection standards
• Cybersecurity and smart contract risk
• Cross-border legal coordination

Progress is accelerating. The Depository Trust and Clearing Corporation, which processed approximately $3.7 quadrillion in settlements in 2024, received SEC approval to begin offering tokenized financial instruments.

DTCC is expected to begin trading tokenized assets such as US Treasuries and stock indexes in the second half of 2026, marking a major milestone for institutional adoption.

Adaptation Will Define Winners and Losers

Keith Grossman emphasizes that tokenization will not eliminate traditional financial institutions. Instead, it will change the medium through which they operate.

Banks, asset managers, and custodians that adapt to blockchain infrastructure may continue to dominate. Those that resist risk becoming structurally uncompetitive.

This mirrors how media companies that embraced digital platforms survived, while those that resisted struggled to remain relevant.

Tokenization and the Future Financial System

Tokenization has the potential to create a financial system that is more efficient, transparent, and inclusive.

• Lower barriers to market access
• Improved auditability and transparency
• Faster capital movement across borders
• Reduced reliance on legacy infrastructure

As blockchain based finance matures, tokenization is likely to become invisible infrastructure, much like the internet became invisible infrastructure for media.

Final Thoughts

Tokenization is not just another fintech trend. It represents a fundamental shift in how financial assets are created, traded, and settled.

As MoonPay’s President argues, this transformation may occur faster than the media digitization of the past because finance touches every layer of the global economy.

Institutions that adapt early stand to benefit from efficiency gains and new market structures. Those that delay may find themselves forced to catch up in a system that no longer waits.

The future of finance is not coming. It is already being tokenized.

Read Also: Gold Tokenization Rises as Crypto Volatility Grows in 2026

FAQs

What is tokenization in finance?

Tokenization is the process of representing traditional financial assets such as stocks or bonds as blockchain based tokens.

Why is tokenization disruptive?

It reduces settlement time, lowers costs, enables 24/7 markets, and removes many intermediaries from financial transactions.

Are major institutions using tokenization?

Yes. Firms like BlackRock, Franklin Templeton, and global banks already operate tokenized financial products.

Which blockchain dominates tokenized assets?

Ethereum currently hosts the majority of tokenized real world asset value.

Will tokenization replace traditional finance?

No. It is more likely to transform how traditional institutions operate rather than replace them entirely.