A new Bank of America report says investor focus is shifting from stablecoins to the tokenization of real-world assets like stocks and real estate, a move poised to reshape financial markets, as first reported by CoinDesk. The bank’s analysts are calling it the start of a "multi-year journey" toward a financial system that runs entirely on-chain.
The real world gets real: While stablecoins have hogged the spotlight, the true promise of tokenization lies in a new financial infrastructure built on 24/7 trading and instant settlement. This could open up massive, previously illiquid markets like real estate to a wider pool of investors through fractional ownership.
Shaking up the giants: The transition is making investors nervous about the fate of traditional banking. The report highlights particular concern for giants like Citi, whose transaction services business—which accounts for roughly 40% of its bottom line—is especially vulnerable to disruption from on-chain finance.
The herd is coming: This isn't just theory; the trend is already in motion with financial heavyweights like BlackRock and JPMorgan building their own tokenization platforms. BofA suggests Wall Street's old guard may be more prepared for the transition than many believe, noting investors might be "underestimating Citi’s expertise and adaptability."
The bottom line: The push to tokenize real-world assets marks a significant milestone, moving blockchain applications from speculative crypto trading toward tangible, high-value use cases that could fundamentally alter how capital markets operate.
The wider view: The move comes as the White House lays out its framework for strengthening digital financial technology, and just months after BofA's own CEO said the banking system would embrace crypto transactions once regulators provide clear rules. Meanwhile, other reports from the bank show it expects the stablecoin supply to grow significantly following recent legislation.
