The financial industry is on the verge of a massive shift, thanks to blockchain and some top investors believe it could be as disruptive as Airbnb was to the hotel business.
The idea is simple, just as platforms like Airbnb allowed people to rent homes directly without hotels acting as middlemen, tokenization is enabling direct ownership and trading of assets without relying on banks and centralized institutions.
Larry Fink, the CEO of BlackRock, is among those pushing for this transformation. He’s looking at ways to move “trillions of dollars” onto the blockchain, according to Aly Madhavji, the founder of Blockchain Founders Fund. “You’ve got Larry Fink of BlackRock talking about how do you move trillions of dollars over into the blockchain,” Madhavji said. “Making sure that we can actually democratize this effectively — this is actually very exciting to see this type of technology really come into the market.”
The shift toward blockchain-based finance is gaining traction, but it hasn’t fully arrived yet. Many people are used to relying on financial middlemen, whether it’s through ETFs, stockbrokers, or centralized exchanges. The question is, can a truly decentralized financial system become the new norm?
Opting In Instead of Opting Out
One of the major criticisms of traditional finance is how people don’t always have full control over their own assets. Jack Knutson, head of business development at Symm Protocol, believes that financial systems are structured in a way that forces users to opt out rather than opt in.
“Everything is opt-out when it should be opt-in. You should be opting in to the privacy policies or terms of service that you want to participate in,” Knutson explained.
This is where tokenization comes into play. With blockchain technology, ownership of assets is direct, transparent, and trackable in real time. Instead of going through a bank or brokerage firm, people can own tokenized versions of stocks, real estate, or commodities, allowing them to trade or transfer ownership instantly without waiting for intermediaries to process transactions.
Knutson sees this as a major advantage of on-chain finance. He explained that market makers — the companies and individuals who provide liquidity in financial markets — would have more control over their trading environments instead of following rigid rules set by centralized platforms like DYDX, GMX, or Hyperliquid.
“When they come and create markets for us, they get to decide how much collateral they want upfront, the amount of margin, what markets, if they want to offer Perpetuals, if they want to offer options — it’s totally open for the solver to decide what they want to offer traders. No one else in the space does this,” he said.
Why Finance Hasn’t Fully Caught Up With Tokenization
Tokenization sounds like a game-changer. It allows assets — stocks, real estate, art — to move freely on blockchain, available 24/7, without middlemen slowing things down. So why hasn’t finance fully adopted it yet? The problem isn’t the technology — it’s the system.
Traditional finance is built on layers of intermediaries: banks, brokers, and clearinghouses that process transactions. They make money by keeping control, and they aren’t eager to change. Moving assets on-chain would mean fewer fees, faster transactions, and a more open market. But it also threatens the power of those who run the current system, so they’re in no rush to push it forward.
Regulation is another roadblock. Financial markets are tightly controlled, and tokenizing assets raises big legal questions. Who is responsible if something goes wrong with a tokenized stock? What happens if a real estate-backed token conflicts with property laws? Governments are still figuring this out, and without clear rules, many businesses prefer to wait.
Then there’s the challenge of adoption. Finance is massive, and change takes time. Unlike industries like travel or media, which were disrupted quickly by the internet, financial markets deal with trillions of dollars and complex regulations. Investors, businesses, and regulators all need time to adjust.
Open Finance Is Inevitable
Even with these challenges, the move to on-chain finance feels inevitable. The current system is slow and outdated. Stock markets have fixed hours. Bank transfers take days. Investment opportunities are limited by geography and bureaucracy. Tokenization fixes all of this.
Imagine a world where anyone can trade tokenized stocks, real estate, or art at any time, without waiting for a bank or exchange to open. A small business could raise funds directly from investors without going through banks or venture capital firms. Global markets would be open to everyone, not just wealthy insiders.
This isn’t just a dream — major financial institutions are already working on it. The shift won’t happen overnight, but the direction is clear. Tokenization is the future of finance, and sooner or later, the old system will have to catch up.
What Tokenization Could Look Like in the Future
Think of a world where buying stocks or real estate is as simple as sending a cryptocurrency transaction. Instead of dealing with brokers, paperwork, and long processing times, investors could instantly purchase and sell tokenized assets with a few clicks.
For example, someone looking to invest in real estate wouldn’t need to buy an entire property. Instead, they could buy fractional shares of multiple properties by holding real estate-backed tokens. These tokens could be traded on a global marketplace, allowing investors from different countries to easily invest in properties without dealing with the complexities of foreign real estate laws.
Similarly, stocks could be tokenized so that investors could buy fractional shares at any time of the day. A college student with $10 to spare could invest in part of an Apple stock, rather than needing to wait until they can afford a full share.
Even bonds and commodities could be tokenized, allowing for greater liquidity and accessibility in financial markets.
TokenFi’s RWA Tokenization Module
TokenFi wants to make tokenization simple and accessible for everyone, not just big companies or tech experts.
The idea is to give people an easy way to turn their real-world assets — like property, businesses, or creative ideas — into digital tokens without any hassle. With its upcoming RWA Tokenization Module, TokenFi promises a user-friendly platform where anyone can tokenize their assets in just a few clicks, with no technical skills or coding required. It will be as easy as setting up an online account, and TokenFi ensures the process stays compliant and straightforward.
