Tokenization of real-world assets emerged as the defining theme at the World Economic Forum Annual Meeting in Davos, Switzerland.
Total value locked in tokenized RWAs surpassed $21 billion as top industry executives including Ripple CEO Brad Garlinghouse and Coinbase CEO Brian Armstrong signaled that blockchain technology has moved from pilot programs into live financial infrastructure.
What Happened: RWA Tokenization Dominates Davos
The forum, which began Jan. 19 and runs through Friday, featured panels titled "Is Tokenization the Future?" and "Where Are We on Stablecoins?" that brought together central bank officials and executives from major financial institutions.
Panelists framed tokenization as a mechanism for making traditionally illiquid assets like equities, bonds and real estate tradable on-chain.
Garlinghouse said tokenization volume on the XRP (XRP) Ledger grew from $19 trillion to $33 trillion in one year.
McKinsey projects the tokenized asset market could reach between $2 trillion and $4 trillion by 2030, while Boston Consulting Group outlined a scenario of up to $16 trillion.
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Why It Matters: TradFi Embraces Blockchain
Institutions including BlackRock, BNY Mellon and Euroclear are now deploying tokenized products at scale. The New York Stock Exchange is exploring tokenized securities and 24/7 trading without altering existing regulatory frameworks.
Armstrong said tokenized equities represent the future of traditional markets.
More than 65% of tokenized assets, including fiat-backed stablecoins, are currently issued on Ethereum (ETH), according to data shared at the forum.
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