Tokenization in Action: Exploring Real‑World Applications [Panel Talk Insights]

Tokenization Enters Its Next Chapter

On April 3, 2025, S-PRO hosted a live fireside chat exploring the practical applications of tokenization – a buzzword that's becoming more grounded by the day. Moderated by Anthony Barringer, the discussion featured two prominent speakers: Michael Barskyi, Head of S-PRO Switzerland, and Johannes Schweifer, CEO of CoreLedger. With backgrounds spanning traditional banking and deep blockchain expertise, the panelists moved beyond jargon to unpack what tokenization is, where it actually works, and why many get it wrong.

If you want to hear the full discussion and explore more real-world examples, regulatory insights, and audience questions, the webinar recording is now available. Watch it on-demand here.

Market Outlook: Tokenization Trends and Forecasts

The tokenization space is the definition of progress, constantly evolving to bring new opportunities. Before we discuss the current market state in greater depth, we’d like to showcase some of its upcoming directions to unveil its full potential. After all, the market is booming, with a cap of more than $63 billion, and it’s primed for further growth.

One future trend is the expansion of types of real-world assets that will be tokenized. We’ll touch upon real estate’s current presence in the RWA dimension later, but it’s far from the only category. Artwork and luxury goods have the potential to be tokenized and would net good value.

Substantial discussions are also underway in the US to legislate stablecoins, which would lead to wider adoption. New regulations will not stifle the market but will make it more reliable and publicly accepted. Such moves may signify a new era for tokenized goods as they move closer to general availability and utilization.

Thankfully, the US isn't alone in regulatory efforts, as Hong Kong and the UAE have jumped on board too with extensive programs for RWA legislation. And it’s no wonder, either, because RWAs have never been more accessible. Current trends are moving toward the ability to purchase small shares of expensive assets, democratizing the market.

In fact, discussions of fractional ownership are generating more buzz than many other trends, if only because they’re sure to bring new blood to the market. Moreover, this trend should give a healthy boost to asset liquidity, which in turn will normalize prices and prevent volatility. Thanks to it, a more measured, resilient market may be just within reach.

Another example of a move toward a more open and accessible market is the emergence of secondary trading. Unlike the traditional model, where real estate changes hands among private equity firms and oftentimes doesn’t enter the general market, tokenization makes it available to all. This is good for buyers and sellers, as the latter can easily shuffle their assets and trade underperforming ones away.

Lastly, we expect multichain and cross-chain efforts to ramp up as companies bet on easily transferring assets, making the entire market more appealing. This will simplify investments and portfolio management, lowering the barrier for entry into the RWA space.

From Theory to Practice: What Tokenization Really Does

At its core, tokenization is the process of converting ownership rights in an asset – whether physical, digital, or intangible – into a digital token stored on a blockchain. These tokens can represent anything from a square meter of real estate to a gram of gold or a share in future revenues. By doing so, tokenization allows assets to be divided, transferred, and traded more flexibly and transparently. It opens doors for new financial models, increased access, and lower transaction costs – if implemented thoughtfully.

Tokenization often gets described as "putting assets on the blockchain," but that shorthand masks the complexity behind it. As Michael put it, tokenization is more like splitting a gold bar into micro-slices so that more people can afford a piece.

The goal? Accessibility and digitization of ownership. But this only works if the surrounding infrastructure is ready: legal frameworks, trust in the issuer, and practical utility.

"Only with blockchain can a digital asset have value," Johannes explained. "Because only then can you prevent someone from spending it twice."

While the tech is largely in place, they both agreed that execution – especially creating a business model around the tokens – is where most projects stumble.

What Types of Real-World Assets Are Best Suited for Tokenization?

The most promising candidates tend to share a few key characteristics: high value, divisibility, infrequent trading, and cumbersome traditional ownership structures. Physical commodities like gold, silver, and diamonds are strong fits because they already rely on certification, custody, and documentation – all of which can be digitized and secured on a blockchain. Real estate is another major use case: it’s illiquid, expensive to fractionalize in the traditional system, and often underutilized, especially in cases like vacation properties or commercial rentals.

Intellectual property, scientific research rights, and future revenue streams are increasingly gaining attention as well. These intangible assets often lack standardized markets or clear mechanisms for public participation. Tokenization offers a way to structure, fractionalize, and finance them through broader access and clearer recordkeeping.

However, the biggest differentiator isn’t the asset itself, but the maturity of the surrounding ecosystem. Assets with existing documentation standards, verifiable ownership, and regulatory clarity are significantly easier to tokenize responsibly. On the flip side, assets without stable valuation models or with uncertain legal standing pose major risks – not just for issuers, but for buyers and platforms as well.

In short, the best candidates for tokenization aren’t just valuable – they're also verifiable, governable, and underserved by current financial infrastructure.

Real-World Use Cases: More Than Just Hype

Real-world applications of tokenization are beginning to show how flexible and creative this technology can be. Assets that once seemed inaccessible or untradeable – from gemstones to cattle ranch revenues – can now be fractionalized, digitized, and distributed globally. But tokenization doesn't always mean creating a "crypto token." Sometimes, as in the case of gold storage certificates, it's about digitizing existing processes to increase trust and efficiency.

This is more than a technical solution. Tokenization can introduce emotional and experiential layers to customer interaction. Symbolic ownership in real-world objects, such as a plane or a vacation property, can deepen user loyalty and engagement. These use cases hint at how businesses might use tokenization not just to transfer value, but to build relationships and expand their brand experience.

Projects mentioned during the talk provide a glimpse into how this plays out. CoreLedger facilitated microfinance in Sri Lanka by tokenizing gemstones, allowing locals to save and invest in tiny fractions. Another standout case was a cattle ranch in Bolivia, where token holders received a share of the ranch's meat revenue. Vacation homes were reimagined not as timeshares but as tokens granting usage rights – a clever way to simplify access without the complications of co-ownership. These examples underline tokenization's strength: transforming traditional ownership models into more agile, participatory formats.

Not Every Business Needs a Token

One of the session's more sobering themes was this: tokenization is not a cure-all.

"If your business doesn’t work without a token, it won’t work with one," Michael said plainly.

Johannes echoed this with his critique of the "liquidity myth" in tokenization. Many assume that fractionalization will automatically attract buyers. But without demand, tokens just sit idle.

"Liquidity comes from a business model that people trust and want to engage with – not from the token itself," he warned.

And that’s where the broader perspective matters: tokenization isn’t a magical switch that turns illiquid assets into a bustling market. It needs real demand, transparent governance, and an infrastructure that supports both primary issuance and secondary trading. The assumption that simply creating a token will attract a crowd is not just wrong – it’s dangerous. Tokenization should be understood as a layer added to an already functioning system, not a replacement for one. In many cases, the asset being tokenized needs a compelling value proposition of its own, long before it's sliced into digital shares.

What’s Really Blocking Adoption?

Despite the buzz, real-world adoption remains slow. A live poll during the webinar confirmed what many already suspect: regulation is the biggest roadblock. In Europe especially, overlapping crypto and traditional asset laws create confusion.

"Regulators aren’t trying to block innovation," Michael argued, "but they haven’t made the rules of the game clear. That’s the problem."

Ironically, the safest-sounding projects – those backed by physical assets – are often harder to launch than meme tokens backed by nothing.

"It’s out of balance," Johannes said. "We should make it easier to build things that are verifiable and useful."

This imbalance reveals a broader insight: regulation often lags behind innovation, but it's also shaped by perception. When financial authorities view tokenized assets through the lens of crypto hype and speculation, they instinctively respond with caution, even if the use case is responsible, tangible, and well-governed. Meanwhile, less substantiated projects sometimes face fewer hurdles simply because they don't touch real-world infrastructure. The challenge going forward is to help regulators distinguish between noise and value, and to push for standards that don't just control risk but encourage thoughtful innovation.

How Do Centralized and Decentralized Exchanges Factor In?

The success of tokenized assets depends not only on how well they're structured but also on where and how they're traded. Centralized exchanges (CEXs) and decentralized exchanges (DEXs) both play vital roles in determining whether tokenized assets gain liquidity, visibility, and user trust.

CEXs provide a familiar, regulated environment with custodial services and often better fiat on-ramps, making them more attractive for institutional and retail investors alike. Their listing standards and compliance mechanisms add a layer of credibility, which can be crucial when real-world assets are involved. For tokenized securities, CEXs are often the only viable route to broader adoption due to legal constraints.

DEXs, on the other hand, offer permissionless access, global reach, and interoperability across blockchain ecosystems. For niche or early-stage tokenized assets, DEXs serve as a launchpad to reach communities that value decentralization and experimentation. However, DEXs come with trade-offs: lower liquidity, lack of regulatory oversight, and risks tied to smart contract vulnerabilities.

In practice, successful tokenization projects may need to embrace a hybrid strategy: leveraging the trust and access of CEXs while tapping into the innovation and community engagement of DEXs. But neither can solve a flawed business model. Exchanges amplify value – they don’t create it.

Looking Ahead: The Future Is Collaboration

Institutional players like BlackRock and JP Morgan entering the space signaled a turning point. Tokenization is no longer fringe. But success won’t come from disruption alone.

Michael noted, "We thought we’d replace the banks. Now we know we have to work with them."

The panelists also discussed emerging models like decentralized science (DeSci), where research could be funded through tokenized revenue-sharing structures.

"Imagine investing in a cancer research project through tokens – not just as a donation, but with a real possibility of sharing in its success," Johannes suggested.

Tokenization is a tool – a powerful one – but only when used in the right context. As Johannes summed it up:

"The tech is easy. The hard part is building something people actually want to use."

The future of tokenization won’t be won by those shouting the loudest, but by those building with purpose, credibility, and a clear understanding of what problem they’re solving. Its success lies in thoughtful integration, not evangelism – in patient architecture, not hype. Whether applied to real estate, research, or renewable energy, tokenization’s long-term relevance will depend on the quality of problems it’s solving and the trust it’s able to earn.