tl;dr
Veteran finance figure Joe Moglia predicts full tokenization of all financial assets within five years, sparking debate among experts and institutions. While pioneers like BlackRock embrace the shift, challenges around regulation, liquidity, and adoption remain.
**Title: Joe Moglia Predicts Complete Tokenization of Financial Assets Within Five Years, Sparking Debate in Global Markets**
Joe Moglia, the former chairman of TD Ameritrade and current chair of Ethereum treasury FG Nexus, has made a bold prediction: within five years, every financial asset—from stocks and bonds to real estate and mutual funds—will be tokenized. His remarks, delivered on CNBC, highlight a seismic shift in the financial landscape, as traditional finance professionals grapple with the rise of Web3 and decentralized finance (DeFi) innovations.
Moglia emphasized that the transition will be irreversible, stating, “Five years from now, there's not going to be a stock, there's not going to be an option, there's not going to be a mutual fund, ETF, anything that's not in effect tokenized.” He attributed the resistance from traditional finance to a lack of understanding of the transformative potential of tokenization. Moglia’s own firm is already exploring the tokenization of its reinsurance company’s risk, signaling a proactive approach to the shift.
The prediction aligns with growing interest from institutional players. BlackRock CEO Larry Fink, once a critic of Bitcoin, now advocates for crypto ownership, a shift Moglia attributes to Fink embracing DeFi’s potential. BlackRock is developing proprietary tokenization technology and engaging with major platforms to integrate digital wallets, aiming to streamline processes for assets like real estate. Fink highlighted that tokenization could reduce fees and democratize access to markets by eliminating intermediaries.
Experts agree that tokenization will reshape financial systems but warn of uneven progress. Fabian Dori, Chief Investment Officer at Sygnum, noted that the trend will “work its way up that risk curve” toward less liquid assets, such as private equity or real estate. He argued that tokenization automates value chains, from issuance to corporate actions, making it a compelling long-term solution.
However, not all are convinced the 5-year timeline is realistic. Musheer Ahmed, Founder & MD of Finstep Asia, called the deadline “highly optimistic,” citing the complexity of global financial infrastructures. He pointed to the U.S., Hong Kong, Singapore, and the UAE as leaders in tokenization, while many markets still lack regulatory frameworks for digital assets. Ahmed also noted that low trading volumes for tokenized assets—largely due to the illiquid nature of underlying real-world assets (RWAs)—pose challenges. “Current tokenized products outside of bonds aren’t actively marketed by brokers or funds,” he said, adding that wider adoption could spur demand and liquidity.
Despite these hurdles, the sector is gaining momentum. Data from RWA.xyz shows total real-world assets on-chain now exceed $33.91 billion, with 483,892 holders, reflecting a 6.6% increase over 30 days. This growth underscores the rising interest in bridging traditional and digital finance.
As tokenization accelerates, its impact will depend on regulatory clarity, technological innovation, and the ability to address liquidity concerns. While Moglia’s vision of a fully tokenized world may seem ambitious, the convergence of institutional backing, technological progress, and evolving market demand suggests the shift is not just possible—it’s inevitable. The question remains: which markets will lead the charge, and which will struggle to catch up?