Opinion: Kevin de Patoul, Co-Founder and CEO of Keyrock
Now there is a specific deja vu in the code. Real World Assets (RWAS), Tokenized Funds, and the On-Chain Treasury are all buzzwords we’ve spoken for years. In 2022, when the hype far outweighed actual adoption, the BCG report shows that the total size of tokenized assets could reach $16 trillion by 2030. The current market capitalization will be $50 billion in 2025.
This time I feel it’s slightly different. It’s not because giants like BlackRock have launched tokenized money market funds, or because circle USDCs are the de facto settlement layer for financial bonds.
That’s because the story finally clashes with reality. Real business, real cash flow, and real compliance.
But despite all this momentum, one thing still drags the industry on the brink of returning. The pursuit of an idealized regulatory framework.
Progress requires iteration rather than integrity
The future of finance is digital. Every asset class, from bonds to real estate, exists in a tokenized form at the end, and when it is done, it must provide more than just a digital replica. Digitalization means faster, cheaper and more accessible markets.
If an institution cannot allocate capital on a large scale, it is not important. Institutions are allergic to uncertainty. The problem is not that regulators are not acting. The current approach is that theoretical perfection is prioritized over practical clarity.
Related: Stablecoin laws are not adjusted – and big fish benefits
Universal framework, seamless cross-border rules, and global harmony sound good on paper. But in reality, they are paralyzed. People talk about Tradfi, which has a “global regime.” However, it is unclear whether it is strictly true. Basel III in Europe is not the same as US banking rules. Crypto is not split of its own. Global finance is generally siloed. Waiting for all the elusive, one-size solutions will slow down.
The reality of this fragmentation is visible in major markets. In the US, tokenized stocks are clearly defined as securities. Mica offers a welcoming and comprehensive playbook in Europe, but the limitations are already clear, especially in areas like Defi. Singapore will allow tokenized bonds for institutional investors while blocking open retail participation.
These examples are not barriers to regulatory. They are evidence of the evolution of regulations. The challenge is not regulatory ambiguity, but rather the lack of market infrastructure and strong demand, which ultimately is underutilized. The market can operate with imperfect rules. If everyone stays on the sidelines, they cannot work.
Waiting cost
Institutions don’t hesitate because they hate blockchain. That’s because no one wants to explain to the regulator why they supported assets that could be considered retroactive in violation of existing laws.
Bank transition costs are found in demolition and restructuring, making it difficult to justify its overhaul of what is considered a niche market. Some regions can confidently commit capital and services. In others, even minor license gaps force players to sit on the sidelines.
Uncertainty does not only delay recruitment. Uncertainty increases the cost of legal opinions and forces businesses to undermine the entire business unit and cross-border liquidity. All jurisdictions become their own legal minefields. It’s more than a technology problem. This is a deep, deep and systematic issue of regulatory clarity.
Clarity unlocks capital, even if it’s messy
The truth is that codes do not require complete global regulations to flourish. Traditional capital markets have been operating for decades under a framework that is far from uniform. What matters is the baseline level of clarity and consistency sufficient for a company to assess its valuation and price risk. Shadow Banking: A $60 trillion system that exists alongside formal regulations rather than external. It’s complicated and incomplete, but it works.
This is not about deregulation. It is to distinguish between necessary protection and unattainable idealism. Fraud prevention and investor protection are important, but you don’t need a perfect global framework.
For regulators, paths that advance prevail on repetitive clarity and public rules, even if they evolve. Today’s progress is better than tomorrow’s perfection. For financial institutions, the most important risk is to fall behind. Tokenization doesn’t wait for certainty, and agile players are already building in jurisdictions that provide actionable guidance. For crypto builders, the challenge is to stop waiting for external validation and work within the legal framework available today.
Tokenization solves the real problem – if we allow it
The value of tokenization is more than just novel for crypto insiders. It’s about solving the real problem. Settlement times measured in days rather than seconds, capital tied to settlements and asset classes locked behind jurisdictional walls.
Stablecoins shows a blueprint. When regulators provide clarity, and even imperfect clarity, adoption explodes. Tokenized securities may continue, but only if you stop treating the regulatory treatment as a binary choice between “complete” and “broken.” While some critics may think this is calm due to mediocrity, iterative progress is how mature the financial system is.
From theory to reality
Crypto moved past speculative memes. We deal with cash-positive companies that move real money on-chain. If there is a moment to embrace repetitive progress, it is now. In a regulatory environment, companies willing to operate clearly define the next chapter of finance.
Progress is equal to momentum and is not perfect. If the industry is forced to wait for a fringe on the overall framework, the digital asset revolution will remain frustratingly theoretical.
Opinion: Kevin De Patoul, Co-Founder and CEO of Keyrock.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
