Trump-era Policies: Catalysts for the Surge in Tokenized Real - World Assets
The tokenization of real - world assets (RWA) has emerged as a pivotal focus for traditional finance entities seeking to establish connections with decentralized finance (DeFi). This trend aims to enhance liquidity, accessibility, and transparency within RWA transactions.
Anticipated Trends in 2025
Four days prior to US President - elect Donald Trump's inauguration on Jan. 20, Cointelegraph engaged in an interview with Eli Cohen, the general counsel of the RWA - tokenizing platform Centrifuge. The conversation centered on the trends expected to unfold in 2025.
Cohen pointed out that RWAs currently supply “the underlying yield for the main stablecoins in DeFi,” predominantly through tokenized Treasurys. However, he anticipates a shift in 2025 as the demand for yields escalates. He forecasts that the growing appetite for yields will drive the development of a more diverse range of tokenized products.
The Impact of a Competitive Market
Cohen highlighted high Treasury rates and the intensifying competition among stablecoin issuers as factors propelling the market towards “higher yielding, still safe investments.” Stablecoins, which rely on tokenized Treasurys for yields, are poised to benefit from this evolution.
Furthermore, Cohen anticipates that the incoming Trump administration will issue “a very public renouncement and repudiation” of restrictive policies, such as Operation Chokepoint 2.0. This, in turn, is expected to further stimulate the growth of the RWA market. “This will open up banking and brokerage channels to spur the creation of many more tokenized products,” he added.
Regulatory Shifts and Their Influence
Cohen stated that the regulatory environment is likely to become more conducive to RWAs in 2025, particularly following what he described as the departure of “the open hostility of the Gensler SEC.” The transition from Gary Gensler's leadership of the US Securities and Exchange Commission to the new leadership appointed by Trump is expected to be “very different.” This change may assist traditional finance (TradFi) firms in surmounting “internal resistance” to crypto markets.
Cohen posed the question, “Will the Trump SEC go so far as to approve a tokenized security retail offering?” Additionally, he mentioned that they will closely monitor the potential enforcement of MiCA stablecoin rules by the EU authorities.
The Ongoing Progression of RWA in 2025
The tokenization of real - world assets is already gaining significant momentum. An illustrative example is the $1 billion deal between Mantra and Damac to tokenize Middle Eastern assets.
The Centrifuge executive anticipates that security concerns related to crypto will be “mitigated over time as crypto service providers mature.” He also noted that centralized exchanges like Coinbase and Kraken “are already being utilized by governmental authorities.”
With the confluence of Trump - era policies, regulatory changes, and market dynamics, the tokenized real - world assets sector appears primed for substantial growth in 2025.