Tokenisation must prove its worth beyond the digital wrapper, CFA Investment Forum told

At the 12th Annual Cayman Investment Forum, industry leaders from Securitize, Fission Labs, and Ether.fi discussed the necessity for tokenized assets to provide utility beyond a mere digital wrapper. Panellists argued that the true value of tokenization lies in enabling secondary market liquidity, leverage, and global distribution for private credit and other real-world assets. Duke Kim of Securitize noted that while the tokenized RWA market has reached approximately $40 billion, adoption is currently hindered by repetitive KYC processes, regulatory uncertainty, and complex user interfaces. Jonathan Shaffer of Fission Labs highlighted how tokenization allows for liquidity in traditionally gated private credit funds, such as those managed by Apollo, by enabling secondary market trading between redemption cycles. Mike Silagadze of Ether.fi emphasized that crypto rails can offer superior yields and accessibility compared to traditional banking, particularly for users in emerging markets. The speakers agreed that while back-office cost savings have not yet materialized, the ability to borrow against tokenized positions and move assets seamlessly remains a primary driver for future growth. Ultimately, the panel concluded that clear regulatory frameworks and standardized KYC passporting are essential to move the industry from a nascent stage to mainstream institutional adoption.