Introduction: The New Core of Financial Innovation
The global fintech ecosystem has entered a defining phase—one where hype is giving way to tangible transformation. Amid the noise of artificial intelligence, regulatory reform, and payments modernisation, one topic dominates every serious fintech discussion:
the rapid rise of stablecoins and tokenised real-world assets (RWAs).
What makes this development so significant is not merely the scale of innovation but its
integration into the fabric of traditional finance. The concept of using blockchain to tokenise real-world value—whether in the form of currencies, commodities, real estate, or securities—is reshaping how institutions think about money, markets, and
trust. Stablecoins are no longer fringe digital assets but are becoming the backbone of cross-border settlements, B2B transactions, and treasury operations. RWAs, meanwhile, promise to unlock trillions in dormant value trapped in illiquid assets.
This convergence of policy, technology, and institutional adoption is not only redefining financial infrastructure—it’s creating a bridge between traditional finance (TradFi) and decentralized finance (DeFi). But with that transformation
comes an array of complex questions about regulation, systemic stability, custody, and inclusion.
Why Stablecoins and RWAs Dominate Fintech in 2025
The surge in stablecoins and RWAs didn’t happen in isolation. It’s the product of
regulatory momentum, market validation, and technological maturity. Together, these forces have accelerated their rise from niche experiments to mainstream financial tools.
1. Policy and Regulatory Momentum
In 2025, regulation—once the biggest barrier to digital assets—has become the key enabler. In the U.S., the Trump administration’s push to “re-shore” crypto activity has turbocharged stablecoin legitimacy. Major institutions like
Bank of America, Citi, and U.S. Bank are forming dedicated teams to explore stablecoin issuance, crypto custody, and tokenised asset platforms.
The Federal Reserve’s exploration of allowing fintechs and crypto firms access to its payment networks marks a decisive shift. This would allow non-banks to settle directly through Fed infrastructure, blurring the line between fintech and
banking.
In Europe, the Markets in Crypto-Assets (MiCA) framework is already operational, offering regulatory clarity and giving EU fintechs a head start. But the U.S. is catching up fast, with panels at events such as
DC Fintech Week highlighting compliance infrastructure as the “next unlock” for large-scale adoption.
2. Market Growth and Institutional Adoption
The numbers tell the story. The tokenised asset market reached $25 billion in 2025, a 245-fold increase since 2020. That exponential growth reflects blockchain’s ability to automate settlements, reduce counterparty risk, and eliminate intermediaries.
Institutional adoption has followed. Companies like Ondo Finance and
Chainlink are building tokenisation and data verification rails that bring institutional-grade trust to blockchain systems. Meanwhile, stablecoins such as
USDC and PYUSD are being used for everything from
cross-border B2B settlements to on-chain treasury management.
On social media platforms like X (formerly Twitter), fintech leaders repeatedly highlight RWAs as fintech’s “first priority”, calling stablecoins the “gateway to DeFi’s mainstream moment.” The shift from speculative crypto trading to real-world
utility is unmistakable.
3. Fintechs Chasing Bank Charters
One of the most intriguing developments of 2025 is the wave of fintechs applying for
U.S. bank charters. To issue stablecoins and custody tokenized assets under full regulatory supervision, fintechs are seeking the same privileges as traditional banks—namely, access to the Federal Reserve’s payment rails and the ability to
hold reserves securely.
So far in 2025, 13 fintechs have filed charter applications, a surge driven by post-Dodd-Frank regulatory easing and new legislation such as the
Promoting New Bank Formation Act. Charters are increasingly seen as
strategic assets, giving stablecoin issuers and payment processors a sustainable regulatory foundation.
Key Challenges and Opportunities
The stablecoin and RWA boom is not without its growing pains. The excitement has exposed deep-seated issues around regulation, infrastructure, trust, and inclusion. The following themes highlight both the
opportunities and challenges ahead:
1. Regulation and Compliance
- Opportunities: The expansion of frameworks such as MiCA in the EU and coordinated reviews by the
Financial Stability Board (FSB) offer a chance to establish globally consistent rules. With clear guidelines, institutional capital can confidently flow into tokenised assets. - Challenges: Legacy financial systems are slow to integrate new technologies, creating compliance bottlenecks. Privacy, data sovereignty, and
KYC in tokenised environments remain unresolved issues. Regulatory fragmentation between jurisdictions could hinder scalability.
2. Infrastructure and Technology
- Opportunities: Stablecoins can serve as new payment rails—delivering real-time, low-cost settlement for B2B and cross-border transactions. Tokenised assets can democratise investment, letting individuals access fractional
ownership in assets like real estate, fine art, or wine. - Challenges: Outdated legacy systems struggle to interoperate with blockchain-based platforms. The lack of common standards for
token formats and smart contract interoperability could lead to fragmentation. On the horizon,
quantum computing presents potential risks to blockchain encryption and long-term data security.
3. Inclusion and Trust
- Opportunities: Tokenisation opens doors for financial inclusion, especially in emerging markets where traditional banking is underdeveloped. Startups in Central and Eastern Europe (CEE), for example, are
tokenising ESG-linked investments, allowing small investors to access impact assets. - Challenges: Digital and rural connectivity gaps persist, particularly in developing economies, where
OTP (one-time password) failures and limited internet access can exclude vulnerable users. Moreover, the rise of
AI-driven valuation models for RWAs introduces opacity, risking public trust if algorithms cannot be explained.
The Broader Context: Intersections with Other Hot Topics
Stablecoins and RWAs don’t exist in a vacuum—they sit at the crossroads of several other fintech megatrends.
- AI Integration: Artificial intelligence is being woven into blockchain systems for
fraud detection, credit scoring, and smart contract auditing. The next frontier will likely involve AI-powered tokenisation platforms that automatically assess, value, and issue digital assets. - Regulatory Intensity: Frameworks such as DORA (Digital Operational Resilience Act) in the EU underscore a global push toward operational resilience and cybersecurity in digital finance.
- Funding Trends: Venture funding is increasingly targeting these “utility” plays—startups that combine
AI with stablecoin and tokenisation solutions are now considered essential fintech infrastructure.
Looking ahead, 2026 is expected to see convergence between these domains.
Quantum applications, ESG tokenisation, and decentralized identity systems will likely build on today’s stablecoin and RWA foundations, making them the bedrock of future financial architecture.
Conclusion: From Disruption to Foundation
The rise of stablecoins and tokenised RWAs marks a fundamental turning point in fintech’s evolution. For years, digital finance has been defined by experimentation—now, it’s defined by execution. Stablecoins are becoming the settlement layer
of global commerce; RWAs are converting static wealth into programmable capital.
This shift is not just about blockchain or crypto—it’s about the modernization of the global financial system. As fintech firms, banks, and regulators converge on this new paradigm, the winners will be those who can build
secure, interoperable, and compliant infrastructure at scale.
In short, stablecoins and RWAs are no passing trend—they are the architecture of the next financial era. The fintech players who master custody, compliance, and connectivity will shape the future of money itself.
Key Issues to Watch
- Regulatory Harmonisation: Will global regulators align frameworks to allow seamless tokenised asset trading across jurisdictions?
- Custody Solutions: How will institutions ensure secure, scalable custody for digital and tokenised assets?
- Interoperability Standards: Can blockchain networks establish universal protocols for asset transfer and settlement?
- Data Privacy and KYC: How will fintechs balance transparency with compliance in a tokenized world?
- Quantum Security: Are blockchain protocols future-proofed against the coming wave of quantum computing?
- Financial Inclusion: Can tokenisation and stablecoins genuinely deliver access to underserved markets?
- AI Governance: How can fintechs ensure fairness, explainability, and accountability in AI-driven asset valuation?
What do you think? Your comments would be appreciated.
