The $51 Billion RWA Market Is a Mirage; Here’s Why Institutional Capital Still Won’t Flow

Despite the RWA market's impressive $51 billion in tokenized assets, institutional investors remain hesitant to pour money in. While tokenization has addressed asset representation, it hasn't tackled issues like fragmented wallet access, liquidity problems, and settlement risks. These barriers make it tough for institutions to commit large sums, meaning the future growth of the RWA market hinges on developing the necessary infrastructure to facilitate smoother capital movement rather than just creating more tokenized assets.