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Developing Nations Will Drive RWA Tokenization Growth in 2026, Says Bitfinex Exec

Emerging economies will lead adoption of tokenized real-world assets next year as they bypass traditional financial infrastructure limitations, according to Bitfinex head of operations Jesse Knutson. Developing markets face significant obstacles in capital formation and foreign investment attraction, creating opportunities for blockchain-based solutions to provide alternative pathways.

#Tokenization addresses these challenges by enabling direct on-chain capital raising without reliance on conventional financial intermediaries, Knutson explained to Cointelegraph. Nations with less established legacy systems can implement digital settlement rails, including #stablecoin infrastructure, faster than developed markets constrained by existing frameworks.

Breaking assets into fractional ownership units democratizes access to investments previously limited to wealthy participants, Knutson noted. Businesses capable of offering fixed returns but unable to secure traditional financing benefit most significantly from asset tokenization capabilities.

Developed economies favor tokenizing #fixed-income products like U.S. Treasuries and money market funds. Real estate and commodity tokenization dominate use cases in developing regions, reflecting different economic priorities and asset availability across markets.

Knutson forecasts the #RWA market will expand to several trillion dollars over the coming decade, though growth depends on institutions advancing beyond experimental programs to commercial-scale implementations. Issuers must transition from limited pilots to fully operational products for the sector to realize its potential.

Legal enforceability of #blockchain-based contracts remains a primary obstacle, along with ensuring sufficient liquidity for seamless settlement and establishing comprehensive investor protection standards, Knutson said