Real estate not the best asset for RWA tokenization — Michael Sonnenshein

As more institutions explore blockchain-based finance, some industry leaders say tokenized real-world assets (RWAs) may surpass $30 trillion by the 2030s. Others are casting doubt on that projection.

In June 2024, Standard Chartered Bank and Synpulse predicted that RWAs may reach over $30 trillion by 2034. The narrative remained strong in the latter part of 2024, with some analysts expressing similar sentiments.

At Paris Blockchain Week 2025, a panel moderated by Cointelegraph’s managing editor, Gareth Jenkinson, brought together executives from across the tokenization ecosystem to discuss the future of RWAs. Participants included Charles Adkins of Hedera, Dotun Rominiyi from the London Stock Exchange, Shy Datika of INX, Steven Gaertner of Tiamonds and Securitize chief operating officer Michael Sonnenshein.

While the majority supported the $30 trillion estimate, Sonnenshein expressed skepticism.

The Truth Behind Tokenization and RWA panel. Source: Paris Blockchain Week

Securitize exec predicts a more conservative trajectory for RWAs

Sonnenshein, a former CEO of Grayscale Investments, said tokenized assets may not reach the $30 trillion mark. He argued that there are many “good systems” in place that already work for traditional assets:

“I have to just say, at the moment there obviously are some really good systems in place that allow some of these assets to trade. So, just because it can be tokenized doesn’t mean that it should be. And so, I’ll take the under on the $30 trillion number.”

Despite being an outlier in his predictions, Sonnenshein said he’s still bullish on RWAs, adding that his sentiment “doesn’t mean that tokenization isn’t here to stay.” 

Sonnenshein said that the space will still see a major explosion of investors who will see their wallets as not just a place for crypto speculation but also a “place that actually houses investments of theirs the way their brokerage accounts or investment accounts would as well.”

Related: BlackRock’s BUIDL expands to Solana as tokenized money market fund nears $2B

Tokenization doesn’t “translate well” to representing real estate ownership

Sonnenshein also questioned the viability of real estate as a primary use case for RWAs.

In the United Arab Emirates, government agencies have made moves to link tokenization with real estate. In January, local real estate developer Damac signed a $1 billion deal with RWA blockchain Mantra to tokenize real estate in the UAE. 

While some put their money on tokenized real estate, Sonnenshein cast doubt on the idea. “I’ll be the controversial one up here and just say I don’t think tokenization should have its eyes directly set on real estate,” he said during the panel. 

While the executive recognized the benefits of tokenizing real estate, he argued that this doesn’t translate well to representing ownership. 

“I’m sure there are all kinds of efficiencies that can be unlocked using blockchain technology to eliminate middlemen and escrow and all kinds of things in real estate. But I think today, what the onchain economy is demanding are more liquid assets,” he added. 

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