Tokenization’s Transformational Impact on Finance: Why It May Outpace the Digital Media Revolution
The financial industry stands at the threshold of a structural transformation that may ultimately prove more disruptive than the digitization of traditional media. According to Keith Grossman, President of crypto payments firm MoonPay, the rise of tokenization—particularly the tokenization of real-world assets (RWAs)—is poised to reshape global finance faster and more fundamentally than digital technology reshaped newspapers, music, and broadcast media in the late 20th and early 21st centuries.
Grossman’s comparison is instructive. When media first began migrating online, incumbents feared existential collapse. Print journalism, physical music distribution, and scheduled broadcasting all appeared vulnerable to digital formats. Yet, rather than disappearing, most media institutions evolved. They adapted their distribution models, monetization strategies, and audience engagement approaches to survive—and in many cases thrive—in a digital-first environment. Grossman argues that finance is now facing a similar inflection point, with tokenization playing the role that the internet once played for media.
Tokenization as Financial Digitization—But Deeper
Tokenization refers to the representation of traditional financial and real-world assets—such as equities, bonds, funds, commodities, and real estate—on blockchain networks. Unlike earlier waves of financial digitization, which largely involved back-end automation and electronic recordkeeping, tokenization restructures the very architecture of ownership, settlement, and transfer.
At its core, tokenization enables assets to be programmable, divisible, and transferable on a 24/7 global basis. This stands in stark contrast to today’s financial markets, which remain constrained by legacy infrastructure, fragmented intermediaries, and limited operating hours. Traditional exchanges close overnight, on weekends, and during holidays—an anachronism in an always-on digital economy.
Incumbents Are Already Adapting
Importantly, tokenization is no longer a theoretical or purely crypto-native concept. Major financial institutions are actively experimenting with and deploying tokenized products. Asset management giants such as BlackRock and Franklin Templeton have launched tokenized funds on public blockchains, signaling institutional confidence in onchain financial infrastructure. Meanwhile, global banks—including Citi, Bank of America, and JPMorgan Chase—are piloting tokenized deposits and onchain settlement mechanisms.
These developments reinforce Grossman’s assertion that incumbents will not vanish but instead persist in transformed forms. Much like legacy media companies that transitioned from print to digital distribution, today’s financial institutions are repositioning themselves within a blockchain-enabled ecosystem. The winners, as Grossman emphasizes, will be those that embrace structural change rather than resist it.
Structural Advantages of Tokenized Finance
The appeal of tokenized RWAs lies in their tangible efficiency gains. Tokenization offers:
24/7 market access, enabling continuous trading and liquidity.
Global scalability, allowing assets to reach a broader investor base without geographic friction.
Reduced transaction costs, driven by disintermediation and automated settlement.
Faster settlement times, replacing multi-day clearing cycles with near-instant finality.
Collectively, these advantages challenge the relevance of existing market infrastructure and compel regulators and institutions to rethink how capital markets operate.
Regulatory Momentum and Market Infrastructure
Regulatory developments suggest growing alignment between innovation and oversight. In September, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement acknowledging the need for a regulatory framework capable of supporting 24/7 capital markets. This marks a significant step toward legitimizing and scaling tokenized financial instruments.
Further reinforcing this shift, the Depository Trust and Clearing Corporation (DTCC)—which processed approximately $3.7 quadrillion in settlement volume in 2024—received SEC approval in December to offer tokenized financial instruments. The DTCC plans to roll out tokenized assets beginning in the second half of 2026, starting with U.S. Treasuries and stock indexes. Such moves underscore that tokenization is no longer peripheral but increasingly central to the future of market infrastructure.
Ethereum’s Role and the Road Ahead
At present, the majority of tokenized RWA value resides on the Ethereum network, reflecting its maturity, security, and institutional adoption. While alternative blockchains continue to compete, Ethereum’s dominance highlights the importance of robust, widely trusted public infrastructure in enabling financial transformation.
Looking ahead, the transition to tokenized finance appears less a question of “if” than “how quickly.” As with digital media, early resistance is giving way to pragmatic adaptation. The institutions that recognize tokenization not as a threat but as an evolutionary step stand to define the next era of global finance.
In this sense, Grossman’s comparison may even understate the impact. While digital media reshaped how information is consumed, tokenization has the potential to redefine how value itself is created, exchanged, and settled—on a continuous, global, and programmable basis.
#USNonFarmPayrollReport #TrumpTariffs #USBitcoinReserveDiscussion