During episode 2 of the podcast series ‘Real-world Assets: The Hidden Revolution’ hosted by The Birb Nest and Nomad Fulcrum, Andrei Grachev, Managing Partner of DWF Labs, shared his insights. He highlighted the growing adoption of tokenisation, its potential to transform financial markets, and the challenges that come with integrating blockchain-based assets into traditional finance. His discussion highlighted the necessity of trust, regulatory compliance, and the importance of practical application in tokenisation’s future.
A Paradigm Shift in Tokenisation
Tokenisation is reshaping how assets are stored, traded, and managed. Andrei Grachev pointed out that the process represents a structural shift in financial markets. He shared:
‘Removing middlemen to make things more transparent and to step away from hyperinflation in fiat currency is a part of tokenised assets. But it’s more about a new paradigm — how people, companies, and investors interact with investment assets, real-world assets, and tradeable assets. It's about how they store them and how regulators, governments, and society can control them.’
Grachev highlighted Tether (USDT) as the best-known case of tokenisation, as it represents fiat currency in a digital form, allowing for seamless cross-border transactions. Tether is an example of how tokenised fiat currencies can improve accessibility and efficiency in financial ecosystems.
Challenges of Tokenisation
Despite its advantages, tokenisation comes with challenges. Grachev discussed the importance of ensuring that tokenised assets are legally binding and verifiable. He mentioned that without proper legal frameworks, investors could be left with tokens of little value if the underlying asset is not adequately secured.
He also shared that while tokenisation eliminates traditional intermediaries — making transactions faster, cheaper, and more transparent — new entities should become responsible for ensuring trust and verification of assets. Grachev also mentioned that if a tokenised asset is not tradeable on a secondary exchange, tokenisation does not make sense. Re-iterations and a learning curve will be a crucial part of adoption of RWA and tokenised assets.
The Future of Tokenised Markets
Looking ahead, Grachev stressed the importance of selecting the right regulatory jurisdiction for tokenised assets. He pointed to regions like the Middle East, which have been more open to developing tokenisation frameworks, as potential leaders in this emerging market.
While blockchain technology provides transparency, scalability, and cost efficiency, Grachev believes that compliance, trust, and liquidity are more pressing concerns. He cautioned against tokenising assets simply for the sake of innovation, referencing past trends where trivial items were tokenised without real-world utility.
‘We all remember 2017 when the first tokenisation boom happened — people were making ICOs (Initial Coin Offerings) for bananas and other things. Some things didn’t need to be tokenised. It has to make sense; everything should be structured. Tokenisation should be cheap, scalable, and functional.’
Final Thoughts
Grachev remains optimistic about the evolution of tokenisation but acknowledges that its development will require iterations, adjustments, and regulatory adaptation. He compared the process to past technological revolutions, emphasising that mistakes and refinements improve sustainability of the ecosystem over time.
As financial institutions like BlackRock and CitiBank explore tokenisation, its adoption in mainstream finance appears inevitable. However, its success will depend on responsible implementation, regulatory alignment, and the creation of a reliable trust infrastructure. With these elements in place, tokenisation could redefine asset ownership and trading on a global scale.
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