RedStone Co-Founder On How Institutions' Tokenization Push Signals A New Financial Era

Over the years, cryptocurrency has transformed from an asset used by a specific and small group of people for exchange into a financial asset class that's on the verge of broader adoption.

In recent months, institutions are moving closer than ever to crypto, but this time, the move is beyond speculation. Institutions are now pushing for tokenization from pilot to infrastructure, as highlighted by recent initiatives from prominent asset managers such as BlackRock and Franklin Templeton to move real-world assets (RWAs) onchain.

Instead of just experiments to test the durability of RWAs like Treasuries and private credit in the onchain world, BlackRock and Franklin Templeton are making the tokenization push with a mindset around core financial products.

In an exclusive with International Business Times, Marcin Kazmierczak, the co-founder of leading cross-chain data oracle provider RedStone, discussed how the fundamental shift among institutions signals the beginning of a new financial era, where tokenization is now about embedding regulated, income-generating instruments directly into payments and fund infrastructure.

Why the Current Wave of Tokenization Efforts is Different

In the early days of tokenization – the process of creating digital footprints of real things – most of the activities were about launching speculative assets. However, things have changed since.

According to Kazmierczak, the current wave of tokenization represents the "perfect convergence" of three crucial factors that distinguish it from earlier efforts:

• A shifting political climate – The dramatic turnaround in politics that kickstarted when U.S. President Donald Trump took over the White House has created a more favorable regulatory environment for blockchain innovation. "This policy direction provides more certainty that institutional players need to make substantial investments in the space," Kazmierczak said.
• Blockchain's maturation – Earlier tokenization efforts were held back by limitations around technicality and scalability, not to mention interoperability and security. With today's blockchain infrastructure offering more sophisticated solutions, institutions are more interested and trusting of what blockchain has to offer, he said.
• Institutional engagement at unprecedented highs – Notably, institutional giants like BlackRock and Apollo have left the "observation window" and are now actively participating in tokenization efforts. "This institutional validation brings legitimacy, expertise, and substantial capital flows into the ecosystem, accelerating development and adoption," Kazmierczak said.

BlackRock and Franklin Templeton's Tokenization Entry is a Notable Catalyst

Just last week, BlackRock partnered with BNY Mellon to tokenize shares of its $150 billion Treasury Trust Fund, marking another major milestone in the tokenization shift.

Franklin Templeton, on the other hand, has been working around tokenization since at least 2023 and in mid-2024, it upgraded its $380 million tokenized money market fund by enabling peer-to-peer token transfers.

Kazmierczak pointed out how BlackRock's BUIDL (BlackRock USD Institutional Digital Liquidity Fund) is barely a year old and it is now about to cross $3 billion in market capitalization, further highlighting the segment's transition.

"These developments indicate several key trends. First, we're likely to see accelerated mainstream adoption as these trusted names bring their extensive client networks into the tokenization system. Second, their involvement will likely drive standardization and best practices across the industry, addressing current fragmentation. Third, their regulatory influence may help shape more favorable frameworks for tokenized assets," Kazmierczak explained.

More importantly, the participation of asset management titans creates "a powerful bridge between traditional and decentralized finance (DeFi)," possibly unlocking up to trillions in previously illiquid assets, he added.

Why Tokenization is an Essential Foundation for the Future of Finance

Tokenization promises a world of global accessibility where investment opportunities are democratized in such a way that investment offerings previously unavailable to some are opened up to various investor classes and previously underserved regions.

For Kazmierczak, tokenization also highlights the borderless nature of blockchain technology. "Unlike traditional financial systems that remain segregated by national boundaries, tokenized assets exit on global ledgers by design. This removes geographical constraints, allowing assets to flow freely across international markets without friction, delays, and costs associated with traditional cross-border transactions," he noted.

How Tokenization May Look Like 10 Years From Now

At RedStone, work is underway on strategically expanding the tokenization sector as it believes in the segment's massive potential. "We know that tokenization will be one of the most significant shifts in financial infrastructure in modern history," Kazmierczak projected.

He went on to note that the growth around tokenization will likely take place in distinct phases wherein the current institutional exploration phase will evolve into a period of "standardization and infrastructure development, followed by mainstream adoption beginning around 2026-2027."

By the year 2030, RedStone expects every major financial institution to already be offering various tokenized products. The company specifically expects the fastest growth to be seen in traditionally illiquid assets such as real estate, private equity, and infrastructure.

The Role RedStone Plays in Unlocking True Utility Around Tokenized Assets

RedStone is at the forefront of the transition of tokenized assets with true utility through its various offerings, including oracle solutions that serve as the essential bridge between off-chain asset values and onchain protocols.

For instance, leading tokenization platform Securitize chose RedStone as the primary oracle for Apollo ACRED, Hamilton Lane SCOPE, and BlackRock BUIDL.

RedStone enables the entire ecosystem of DeFi applications to interact meaningfully with tokenized assets through its critical data layer. It offers more cost-effective, flexible, and accurate price feeds for even the most niche tokenized assets.

A new era of finance is at hand, and tokenization has already established itself as a key foundation that will shape a future where digital assets can seamlessly interact, combine, and integrate within both DeFi protocols and traditional systems.