Crypto Billionaire Yat Siu says tokenization increases Ethereum’s utility in 2025. On-chain RWAs exceed $21B and institutions are testing tokenized instruments now.
In a CNBC interview, Yat Siu explained how tokenization shifts asset settlement and liquidity to smart contract platforms, naming Ethereum and several altcoins as primary beneficiaries.
As of mid-2025, on-chain tokenized real-world assets exceeded $24 billion, up nearly 380% from three years earlier.
Why Tokenization Favors Ethereum
Ethereum supports broad token standards such as ERC-20 and ERC-721, which allow issuers and marketplaces to interoperate.
Developers use mature tooling, audited libraries, and a dense DeFi and NFT stack that reduces integration time for real-world asset projects.
Those features produce deeper liquidity pools, reusable composable modules, and faster product iteration, which encourage issuers to choose Ethereum as a settlement layer.
Yat Siu noted that tokenization workflows map naturally to smart contracts, making fractional ownership and permissioned issuance straightforward to implement on-chain.
Network effects matter because lending, market making, custody, and secondary markets already connect to Ethereum rails more than to many alternative chains. That improves market depth and pricing.
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Tokenization Growth, Liquidity and Institutional Interest
On-chain evidence shows rapid adoption. Coinbase reports RWA tokenization grew from $85m in April 2020 to over $21B by April 2025, a roughly 245x increase.
RWA.xyz lists about $24B on-chain by mid-June 2025, led by private credit and tokenized treasuries. Large asset managers and banks run pilots for custody, tokenized funds, and settlement rails, and Deloitte projects up to $4T of tokenized real estate by 2035.
These flows matter because they translate issuer demand into tradable secondary markets and institutional counterparties.
The data shows tokenization is moving from proofs of concept into live product tests across custody, lending, and trading.
Volume and issuer diversity increase market resilience over time.
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Tokenization Challenges, Oversight and Animoca’s Approach
Regulatory frameworks and custody standards remain the principal constraints, with central bankers warning about stablecoin risks and banking rules changing.
Animoca responds with a three-pronged approach: native Web3 projects, advisory services for token economics, and strategic investments to capture tokenization opportunities in core markets globally.
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Conclusion
Tokenization is tangible in 2025, Ethereum leads settlement and liquidity, but regulation and custody standards will shape long-term adoption ahead.
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