Tokenizing RWAs makes all assets fungible, but is that a good thing?

Markets are changing, a lot of people still have a hard time adjusting to this.

There’s billions of dollars entering tokenized real-world assets (RWAs) markets, yet most people still struggle to understand where they fit within the broader financial landscape.

Despite the rapid growth of tokenization, many continue to view RWAs as a niche experiment rather than a foundational shift.

I guess that this hesitation isn’t surprising, markets are changing faster than people are able, or willing, to adapt.

The truth is, tokenizing real-world assets is far more important than most people realize.

For decades, financial innovation focused primarily on abstraction.

Stocks, bonds, derivatives, and digital payments all represented incremental improvements in how value is recorded and transferred, but they remained bound by centralized systems, geographic borders, and institutional gatekeepers.

Tokenization challenges that structure at its core. It introduces a universal standard for representing value, regardless of the asset’s physical or intangible nature.

Contrary to what most may think, this isn’t just about representing gold bars or real estate deeds on-chain. The real breakthrough lies in how assets are transformed into interoperable units that can move, settle, and interact with one another seamlessly.

When assets are tokenized, they become programmable, divisible, and composable. This transforms them from static stores of value into dynamic financial instruments.

Fungibility is the key concept most people overlook. When every asset can be expressed in a common digital format, liquidity ceases to be an exclusive privilege. Traditionally illiquid assets such as real estate, private equity, collectibles, intellectual property, can suddenly be part of the global markets in a more impactful way.

The promise of tokenizing real-world assets is that everything begins to function on a decentralized, borderless layer.

Instead of relying on intermediaries to verify ownership, enforce contracts, or process transactions, these functions can be embedded directly into code. This reduces dependency on trust-based systems and replaces them with transparent, verifiable mechanisms.

In practical terms, this means faster settlement times, lower barriers to entry, and global accessibility. An investor in one country can gain exposure to assets in another without navigating layers of bureaucracy or regulatory inefficiencies.

Capital becomes fluid, no longer constrained by outdated financial infrastructure designed for a pre-digital world.

But that isn't the best part.

You see, this shift fundamentally redefines what money is. Money stops being merely a medium of exchange and evolves into a universal interface for value.

When every asset can be priced, transferred, collateralized, and settled using the same underlying rails, the distinction between money and assets begins to blur.

Value becomes modular, interoperable, and programmable.

This change has implications for how we approach ownership and markets.

Ownership is no longer a static concept defined by paperwork and custodianship. Instead, it becomes a dynamic state.

When assets can be used as collateral instantly or even directly functioning as any currency, markets change, forever!

Markets have always evolved, but rarely at this pace. The transition from physical to digital communication took decades.

The digitization of finance is happening in a fraction of that time.

Those who fail to recognize this shift will continue to evaluate new markets using outdated frameworks. They will focus on surface-level use cases while missing the structural transformation underneath.

In the long run, real-world asset tokenization will change markets and that's a good thing.

Specifically because when we take a step back to revisit why fiat exists in the first place and consider its place when everything it has existed to make easy to trade becomes tradable in themselves, we're likely to find that a significant shift is ahead of us.

Every single asset on earth is becoming a currency on its own. This is a change we simply cannot measure its potential positive impact.