Chainlink co-founder Sergey Nazarov has emphasized the critical need for the United States to build a protective competitive moat around tokenized real-world assets (RWAs). Speaking at the 2025 Digital Asset Summit, he underscored that the country must harness its well-established capital markets to sustain its dominant position in the rapidly transforming financial sector. The tokenization of assets has emerged as a global trend, with major economies exploring its potential and enacting regulations to stay ahead. Failing to act strategically could leave the US lagging behind, as other regions aggressively invest in blockchain-based financial solutions.
The Potential of Tokenized RWAs
The surge in the market for tokenized RWAs demonstrates the increasing recognition of blockchain-based financial instruments. In 2025, the total value of tokenized RWAs reached an all-time high of $18.8 billion, with private credit accounting for a significant $12.2 billion. This exponential growth signals that the sector could ultimately expand into a $100-trillion market over the next few decades. Institutional investors and financial hubs are rapidly adopting tokenization tools to increase efficiency and transparency in asset management.
Tokenization brings a host of advantages, particularly in enhancing liquidity for historically illiquid assets such as real estate and private credit. Blockchain technology streamlines transactions, allowing for instantaneous settlement while eliminating excessive costs associated with multiple intermediaries. By leveraging a decentralized ledger, financial institutions can enhance trust, security, and compliance, fostering an integrated global asset marketplace. Financial experts believe that as more institutions recognize these benefits, adoption will accelerate, further driving innovation and competition in the market.
The Role of US Policy and Regulation
Nazarov has strongly advocated for a progressive regulatory framework that empowers tokenization while ensuring financial stability. He points out that markets like the United Arab Emirates have proactively implemented clear guidelines to attract blockchain investments. If the US does not follow suit, it risks losing its early leadership in digital finance to regions that offer more attractive and predictable regulatory environments. The importance of fostering domestic financial innovation while maintaining investor protection cannot be overstated.
Historically, the US has gained a competitive edge by embracing early digital advancements, such as the rapid growth of online commerce. However, its dominance in blockchain and digital finance is not yet assured. Policymakers must take decisive action to facilitate innovation in tokenized assets while ensuring regulatory clarity to retain investor confidence. Without bold action, capital may flow to jurisdictions with friendlier financial structures, potentially weakening the US's position in the rapidly evolving global economy.
Comparing Traditional and Tokenized Assets
Traditional assets come with well-established but often cumbersome processes. Investments in real estate, private credit, and securities frequently involve prolonged transaction timelines, high costs, and numerous intermediaries that add layers of complexity. Conversely, tokenized assets introduce efficiency by enabling fractional ownership, reducing settlement bottlenecks, and expanding investor access beyond regional barriers.
Companies such as Polygon are already pioneering the fractionalization of real estate, allowing smaller investors to participate in asset ownership that was previously inaccessible. Additionally, blockchain’s open-source framework facilitates global collaboration by providing decentralized solutions for asset transfers and management. As more financial institutions explore tokenized asset structures, the gap between traditional financial systems and digital finance is expected to narrow, paving the way for a more interconnected and efficient financial ecosystem.
Challenges and Opportunities
Regulation remains one of the largest hurdles for the US as it seeks to establish a competitive moat around tokenized RWAs. While innovation has the potential to revolutionize asset markets, regulatory stability is essential to ensuring investor security and minimizing financial risks. Striking the right balance between fostering innovation and enforcing safeguards will define the success of tokenization in the US financial system.
Additionally, the US faces competition from other financial hubs, notably the UAE, which has established itself as a leader in tokenized finance by adopting forward-thinking regulations. If the US can build a similarly attractive yet responsible regulatory framework while leveraging its deep capital markets, it stands to strengthen its position in the evolving landscape of digital assets. The key to sustaining leadership in this arena lies in strategic policymaking, fostering institutional participation, and investing in blockchain-based financial infrastructure.
Conclusion
Sergey Nazarov’s insights underscore the transformative potential of tokenized RWAs and the urgency for the US to take action. Harnessing blockchain technology alongside a resilient domestic financial ecosystem will be essential in maintaining economic dominance. By fostering a regulatory environment that incentivizes innovation while ensuring legal clarity, the US has the opportunity to shape the future of tokenized assets. Proactive steps taken today could define the nation's standing in the next era of capital markets.
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