#MyStrategyEvolution Tokenized bonds and ETFs drive adoption.

The rise of tokenized bonds and ETFs is playing a key role in attracting traditional investors to the cryptocurrency markets. In Japan, real estate security tokens are making previously closed markets accessible to retail investors, sometimes even more than traditional J-REITs.

Tokenization streamlines fund management and increases transparency, allowing asset managers to connect directly with end users. “This efficiency, along with greater transparency, could make these products appealing to traditional investors who otherwise might not enter the crypto space,” said Henskens.

He pointed to cross-border interoperability as the next significant milestone. “The smooth and compliant movement of tokenized assets between jurisdictions” will be key to expanding adoption.

In Asia, this means connecting the infrastructures of countries like Japan and Hong Kong, while globally, regulatory frameworks must reflect the technical realities of tokenized finance, especially regarding settlement, regulatory compliance, and custody.