Tokenization is delivering limited advantages today but could scale materially if access widens, according to NYDIG. In December 2025, Greg Cipolaro, the firm’s global head of research, said current gains concentrate among blockchain-native assets and large institutional participants.
NYDIG’s analysis finds that early tokenization benefits are modest and accrue mainly to market participants already native to blockchains or to big institutions able to capture network effects. These advantages typically appear as reduced settlement latency in specific on‑chain use cases, lower transaction costs for blockchain-native flows, and improved operational efficiencies where instant settlement is feasible. Cipolaro highlights that, in this phase, tokenized instruments tend to coexist with traditional infrastructure rather than replace it.
Tokenization, defined as the representation of real‑world assets as blockchain‑based tokens, shows potential to unlock liquidity and enable fractional ownership of illiquid assets such as real estate and private credit. NYDIG says realizing that potential depends on two interlinked developments: clearer regulatory frameworks and seamless integration of tokenized assets into retail investment and banking platforms.
The report also stresses the importance of improved interoperability and composability within blockchain ecosystems—citing platforms like Ethereum as critical enablers—and calls for continued technological progress and stronger infrastructure to support scale.
Market and product implications
According to NYDIG, the immediate economic impact on legacy cryptocurrencies is likely to be limited, as tokenization’s initial window favors niche use cases rather than broad market re‑pricing. Over the longer term, however, tokenized real‑world assets (RWAs) could become foundational within both centralized finance and decentralized finance ecosystems if the prerequisites are met.
For product teams and compliance functions, the trajectory implies an operational roadmap that prioritizes platform connectivity and regulatory readiness. For investors, the chief near-term changes will be access to more granular settlement mechanics and targeted fee reductions, while transformational outcomes such as mass retail participation and deep secondary markets remain conditional.
Democratization—through retail access, regulatory clarity and technical interoperability—is the pivotal milestone for tokenization to move from niche benefit to systemic utility.
