The tokenised real-world investment market has expanded rapidly, led by government securities, money market funds and commodities. However, tokenisation still represents only a fraction of the markets it seeks to serve.
Private markets continue to grow, yet access remains concentrated and operational processes remain fragmented. Tokenisation has the potential to connect private-market products with broader regulated distribution channels while simplifying ownership administration and transfer processes.
One of the most common misconceptions is that tokenisation creates liquidity. In reality, more efficient transfers do not change valuation cycles, redemption terms or the underlying characteristics of the investment. Tokenisation can improve market efficiency, but it does not eliminate liquidity constraints.
Unlike publicly traded securities, real estate involves unique properties, complex ownership structures and transfer restrictions that are not easily standardised. While progress is being made, widespread adoption will depend on the continued evolution of regulation, valuation frameworks and market infrastructure.
The opportunity may not be to reinvent investments, but to rethink how they are distributed, administered and transferred. As tokenisation evolves, investment managers will need to assess which products are best suited to digital ownership structures and how prepared their operating models are to support them.
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