The tokenization of real-world assets (RWAs) is increasingly gaining attention from traditional finance as it aims to bridge into decentralized finance (DeFi). Eli Cohen, general counsel of the tokenizing platform Centrifuge, expressed that RWAs offer a foundational yield for stablecoins in DeFi, particularly through tokenized Treasurys, and anticipates diverse products emerging in 2025 due to rising yield demands. He highlighted that higher Treasury rates and stiff competition among stablecoin issuers are nudging the market toward safer, higher-yield investments. Cohen noted that with a Republican administration, there may be a shift away from restrictive policies, promoting growth in the RWA sphere. Furthermore, he predicts a friendlier regulatory environment post-Gary Gensler's SEC leadership, potentially aiding traditional finance's acceptance of crypto. He cited that the current momentum for asset tokenization is already notable, with initiatives underway to tokenize various assets globally. As the maturity of crypto services increases, security concerns are expected to diminish, fostering further market expansion.

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