BofA Highlights Growing Momentum in Real-World Asset Tokenization

Bank of America Sees Rising Investor Focus on Tokenized Real-World Assets

Investor attention is increasingly shifting from stablecoins to the tokenization of real-world assets (RWAs), according to a new report from Bank of America (BAC). The bank noted growing interest in digitizing assets such as equities, bonds, deposits, and real estate as blockchain adoption broadens beyond speculative use cases.

While dollar-pegged stablecoins still dominate blockchain activity, conversations with institutional clients suggest RWAs are emerging as a priority area. Bank of America said this marks the beginning of a multi-year transition toward fully on-chain transactions, driven by the promise of instant settlement, 24/7 access, global reach, and smart contract-based compliance.

Tokenizing real-world assets involves issuing digital representations of traditional instruments on blockchains, enabling fractional ownership and enhanced liquidity. One example cited in the report is the Dubai Land Department’s platform, which aims to tokenize $16 billion worth of real estate by 2033, opening access to property markets via fractional shares.

The report also flagged concerns among investors over how tokenization could disrupt legacy financial infrastructure. Citigroup (C), whose transaction services unit contributes around 40% of its earnings, was highlighted as potentially vulnerable. Still, Bank of America suggested Citi’s blockchain capabilities may help it remain competitive.

Overall, the bank framed the tokenization trend as a major milestone in the evolution of blockchain finance, with the potential to reshape market infrastructure and traditional revenue models.