News in Brief

1. TradFi partnerships accelerate tokenisation adoption:

Institutional involvement continues to deepen. Aviva Investors is collaborating with Ripple to explore tokenised fund issuance on the XRP Ledger, BlackRock has extended its tokenised Treasury exposure into DeFi trading venues, VerifyMe (NASDAQ: VRME) is merging with Open World to build a regulated RWA infrastructure, and Robinhood has launched a Layer-2 testnet designed for tokenised assets and DeFi liquidity integration.
 Why it matters: Tokenisation is increasingly being driven by established financial institutions integrating blockchain into existing products rather than launching standalone crypto experiments.

2. Regulation shifts from discussion to enforcement: China has reiterated its ban on crypto activity while formally addressing RWA tokenisation in policy guidance, reinforcing strict domestic controls. At the same time, the UAE continues attracting institutional capital through clearer virtual asset licensing frameworks, while industry forecasts highlight automated compliance standards embedded directly into token protocols.
 Why it matters: Legal clarity—and regulatory fragmentation—are becoming primary determinants of where tokenised markets can scale.

3. Market infrastructure pivots toward liquidity and settlement efficiency: Avalanche’s RWA total value locked has surpassed roughly $1.3bn, supported by institutional tokenised funds and structured credit issuance. Meanwhile, exchanges including the NYSE are exploring blockchain-enabled 24/7 trading venues, with atomic delivery-versus-payment settlement increasingly seen as the next infrastructure upgrade.
 Why it matters: The focus is shifting from token creation toward liquid secondary markets, continuous trading and faster settlement.

 4. RWA growth broadens across assets and networks: On-chain RWA value is estimated around $24–25bn, with strong growth in Treasuries, private credit and specialised assets such as aviation finance and shipping. Ethereum continues to dominate institutional value flows, while Solana leads in retail wallet growth. Competition among chains — including XRP Ledger — is intensifying as networks position themselves for tokenisation infrastructure.
 Why it matters: Tokenisation is expanding beyond financial assets into real-economy use cases, with different blockchains specialising in institutional versus retail adoption.

Deep Dive — The Gulf’s $500bn tokenisation opportunity

Tokenisation could unlock roughly $500bn in real-world assets across the Gulf by 2030, positioning the region as a potential global hub for regulated digital asset infrastructure, according to consultancy Kearney.

The Details

Kearney’s analysis suggests the GCC — particularly the UAE and Saudi Arabia — is unusually well positioned for tokenisation due to large sovereign capital pools, significant real estate portfolios and proactive regulatory development. Governments across the region are linking digital asset initiatives with broader economic diversification and financial modernisation strategies.

Real estate is expected to be an early anchor asset class. Large commercial property portfolios and infrastructure projects lend themselves to fractional ownership, improved liquidity and cross-border investment access. Private credit, infrastructure financing and commodities are also highlighted as strong candidates, especially where tokenisation can reduce settlement friction and improve transparency.

Regulation appears to be the decisive factor. The UAE’s virtual asset licensing frameworks and sandbox initiatives have attracted fintech partnerships, institutional pilots and digital asset infrastructure investment. That regulatory clarity is helping move tokenisation from proof-of-concept pilots toward production-grade financial products.

For financial institutions, the primary appeal remains operational efficiency rather than speculative upside: faster settlement cycles, programmable compliance, reduced administrative costs and broader investor reach. Sovereign wealth funds, regional banks and asset managers are increasingly exploring tokenised funds, structured credit issuance and alternative asset financing.

If adoption continues along current trajectories, tokenisation could become embedded within Gulf capital markets rather than remaining a niche digital asset experiment.

Source: Kearney — “Real-world asset tokenization: A $500bn opportunity for the GCC.”