Scaling Asset Tokenization: The Verification Challenge

I’ve been following the discussion about the future of real-world asset (RWA) tokenization for more than a month now. This article tells us that the market potential for RWA tokens is very promising. It could reach $30 trillion in the next decade. As such, it could revolutionize the financial markets.

However, not everything is clear at the moment. Some things need to be prepared and one of them, or if not, the most important of them is to have standardized verification processes. The issue of compliance has been raised again, particularly concerning KYC and AML. The writer argues that without such a robust verification process, the benefits of liquidity and efficiency that RWA tokenization offers cannot be fully realized. For him, blockchain technology alone cannot do this. An additional platform must be added to supplement what’s lacking off-chain.

If the future of RWA tokenization is heading to what the writer describes in his article, I wonder if those in crypto who value their privacy more will buy ideas like this. Perhaps, for big financial institutions that's the ideal direction for them.

Reference:

The future of RWA tokenization: A call for standardized verification