Asia’s Web3 research and consulting firm Tiger Research advises financial institutions to prioritize gaining hands-on experience in overseas markets to gain first-mover advantage in the rapidly growing Real World Asset (RWA) tokenization space, rather than waiting for domestic laws to catch up. In a report titled First, start RWA tokenization overseasThe company highlights that the global RWA market has already expanded from $25 billion to $36 billion in the first half of this year, and has demonstrated clear operational efficiencies such as automated interest payments and significantly shortened settlement periods.
Regulatory vacuum creates uncertainty for financial institutions
Despite the proven efficiency of markets, Tiger Research notes that financial institutions face a major hurdle: a wide regulatory vacuum. The report notes that the lack of legal validity of distributed ledger records and inadequate investor protection frameworks create significant uncertainty for potential participants. The company claims that this regulatory gap is the main barrier preventing traditional financial institutions from entering the tokenization space at scale.
Strategic path: regulated markets vs. on-chain platforms
To overcome this, Tiger Research recommends that companies consider entering jurisdictions with established regulatory frameworks. Before expanding, companies should thoroughly review key operational requirements, including establishing a local presence, securing appropriate licenses, selecting specific assets to tokenize, defining target investors, selecting payment currencies, and setting up custody and operational structures.
This report outlines two major routes to market entry. The first is to enter regulated markets such as Hong Kong, Singapore, and the United States, where clear legal frameworks are already in place. The second path includes Ondo ($ONDO) and plume ($ plume) Accelerate market entry and avoid traditional regulatory bottlenecks.
Why this matters to the industry
The report emphasizes that the key to long-term success is to accumulate practical operational capabilities through real-world experience, rather than waiting for perfect local regulations. Tiger Research believes that major U.S. financial companies are currently building their own platforms or using Canton (CC) or Solana ($SOL), and Ethereum ($ETH). The company’s core message is clear. It is important to quickly explore available avenues rather than waiting for regulations to evolve.
conclusion
Tiger Research’s analysis provides a practical roadmap for financial institutions considering entering the tokenization market. The report challenges the industry to move beyond theoretical discussions to practical implementation by advocating for active international expansion and practical experience. The window of opportunity is open for companies looking to compete in the $25 billion to $36 billion RWA market, but it may not last for long.
FAQ
Q1: What is RWA tokenization?
RWA tokenization is the process of representing ownership of real-world assets such as bonds, real estate, and commodities as digital tokens on a blockchain. This enables faster settlements, automatic payments, and increased liquidity.
Q2: Why does Tiger Research first recommend overseas?
The company argues that many domestic markets lack a clear legal framework for distributed ledger records and investor protection, creating uncertainty. By entering established foreign markets, companies can gain practical experience and first-mover advantages while waiting for local regulations to develop.
Q3: Which platforms are mentioned as suitable for market entry?
Tiger Research highlights two main routes: entering regulated markets such as Hong Kong, Singapore, and the US, or using on-chain native platforms such as Ondo ($ONDO) and plume ($ plume). Major US companies also include Canton (CC), Solana ($SOL), and Ethereum ($ETH).
