As blockchain technology gradually enters traditional financial markets, Real World Asset tokenization (RWA Tokenization) is becoming an important development direction in the cryptocurrency industry. From U.S. Treasury bonds and money market funds to stocks and bonds, an increasing number of traditional financial assets are beginning to be issued, recorded, and managed through blockchain.
Recently, the Spiko Amundi Overnight Swap Fund (SAFO) under French fintech company Spiko has attracted market attention. According to data published by Spiko, as of October 27, 2026, the fund's assets under management reached USD 2.39 billion, surpassing Circle's USYC and BlackRock's BUIDL to become the largest tokenized fund by assets at that time.
This change reflects that Tokenized Funds are gaining attention from institutional investors and corporate users. The combination of traditional financial products and blockchain technology has also moved RWA beyond conceptual discussion and into practical financial applications.
So, what is RWA? How does Tokenization change the traditional fund market? What are the advantages and risks of tokenized money market funds?
I. What Is RWA? Why Has It Become an Important Direction in the Cryptocurrency Market?
RWA (Real World Assets) mainly refers to the process of using blockchain technology to map, issue, or represent traditional financial or physical assets as on-chain tokens.
Common RWA assets include:
- U.S. Treasury bonds and government bonds
- Money market funds
- Stocks and bonds
- Real estate
- Gold and other commodities
- Private credit and financial claims
Traditional financial assets usually rely on banks, fund management companies, custodians, and securities trading systems to complete issuance, trading, and settlement. RWA Tokenization, by contrast, attempts to use blockchain to record asset rights or fund shares in the form of digital tokens, enabling them to be managed and transferred on supported blockchain networks.
The main reason RWA has attracted attention is that it provides a new connection between traditional financial markets and the cryptocurrency ecosystem.
For traditional financial institutions, blockchain can provide more automated asset recording, trade settlement, and fund management methods. For the cryptocurrency market, tokenized assets have the opportunity to introduce yield-bearing assets from traditional financial markets and expand the variety of on-chain financial products.
However, asset tokenization does not mean that all real-world assets will be directly transferred to blockchain. Some products only tokenize fund shares or related rights, while the underlying assets are still custodied and managed by traditional financial institutions.
II. How Does Tokenization Change Traditional Financial Markets?
Tokenization is the core technical link in RWA development.
Simply put, it uses blockchain technology to represent the ownership, beneficial rights, or fund shares of real-world assets in the form of digital tokens, and to issue and manage them in accordance with relevant laws and product rules.
Traditional financial products usually require multiple institutions to complete registration, trading, and settlement. Asset tokenization can move part of these processes onto blockchain and execute specific rules through smart contracts.
This model mainly brings four types of changes.
Improving Settlement Efficiency
Asset trading and settlement in traditional financial markets may be limited by bank business hours and intermediary processing procedures. Blockchain can support more flexible trading and settlement arrangements, and some tokenized products can also achieve near-round-the-clock on-chain transfers.
Reducing Certain Operating Costs
Smart contracts can automatically execute part of the registration, share management, and trading processes, reducing repetitive operations. However, actual costs still depend on the blockchain network, custodians, and regulatory requirements.
Expanding Asset Use Cases
In the future, tokenized fund shares can, subject to regulatory and product rules, be connected with other digital financial services, such as collateral financing, liquidity management, and on-chain asset allocation.
Improving Asset Accessibility
Some traditional fund products have high investment thresholds, while tokenized structures can expand investor coverage through more flexible share designs. However, minimum investment amounts, investor eligibility, and trading restrictions are still determined by the specific product.
Therefore, Tokenization is not simply turning assets into digital tokens, but rather attempting to redesign how traditional financial products are issued, held, and circulated.
III. What Are Tokenized Funds? How Do Tokenized Funds Operate?
Tokenized Funds refer to fund products whose shares are issued or recorded in the form of blockchain tokens.
Such products are usually managed by professional fund management institutions responsible for investment decisions, and the underlying assets may include short-term Treasury bonds, government securities, money market instruments, and other assets that comply with the fund's investment policy.
Their basic operating process can be divided into three stages:
Step 1: Underlying asset allocation. The fund management institution allocates assets according to the product investment strategy, such as short-term government bonds, Treasury bills, or other short-term financial instruments.
Step 2: Tokenization of fund shares. Fund shares are issued or recorded through blockchain, and investors receive corresponding digital tokens representing the fund shares or related rights they hold.
Step 3: Share management and redemption. Investors subscribe, transfer, and redeem according to the fund rules. Blockchain is responsible for recording token changes, while actual asset management, valuation, and fund settlement still require the participation of relevant financial institutions.
It should be noted that tokenized funds are not the same as stablecoins. Stablecoins usually aim to maintain a specific currency value, while tokenized funds represent fund shares, and their net value, returns, and redemption rules depend on the underlying assets and fund structure.
IV. Why Have Money Market Funds Become a Popular RWA Area?
Money Market Funds are relatively mature cash management tools in traditional financial markets, usually investing in short-term, highly liquid financial assets.
Common investment targets include short-term Treasury bonds, Treasury Bills, government agency securities, and short-term money market instruments that comply with the fund's investment policy.
Compared with equity funds, money market funds usually place greater emphasis on liquidity and principal stability, but this does not mean they are completely free of investment risk, nor does it mean all products guarantee that principal will not be lost.
There are three main reasons why money market funds are suitable for exploring tokenization:
First, the underlying assets have clear financial value and a relatively mature valuation system, making it easier to establish a digital share management mechanism.
Second, corporate and institutional investors have ongoing cash management needs. Through tokenized funds, it is possible to explore allocating idle funds to financial products with short-term yields.
Finally, blockchain can provide more flexible asset recording and transfer methods, giving fund shares the opportunity to connect with other digital financial applications.
Research published by the European Central Bank in April 2026 pointed out that tokenized money market funds remain a relatively small but fast-growing market. Their potential advantages include faster settlement speeds, near-round-the-clock availability, and new applications such as using fund shares as collateral. However, liquidity mismatches and operational risks also deserve attention.
V. What Are the Differences Among Spiko, BlackRock BUIDL, and Circle USYC?
Spiko has recently attracted attention mainly because the assets under management of its SAFO fund surpassed those of Circle USYC and BlackRock BUIDL at the end of October 2026.
All three types of products are tokenized financial products, but they differ in fund management institutions, investor positioning, and product structure.
Spiko SAFO
Spiko is a French fintech platform. Its SAFO fund was launched in cooperation between Spiko and Amundi and adopts an overnight swap strategy. According to data published by Spiko, as of October 27, 2026, SAFO's assets under management were approximately USD 2.39 billion.
Spiko's feature is that it serves corporate and individual investors who meet product eligibility requirements and provides tokenized fund shares through blockchain.
BlackRock BUIDL
BUIDL is a tokenized fund product launched by BlackRock, mainly targeting institutional investors who meet eligibility requirements. The product combines traditional financial asset management with blockchain technology to provide institutions with on-chain USD-denominated fund shares.
Circle USYC
USYC is a tokenized yield-bearing fund product under Circle, mainly serving eligible institutional investors and focusing on the connection between short-term yield assets and the digital asset market.
The market positioning of these three types of products is not entirely the same, so product quality cannot be judged solely by assets under management. Investors also need to pay attention to underlying assets, fees, investment thresholds, redemption mechanisms, legal structure, and actual risks.
VI. What Future Development Opportunities Exist for Tokenized Assets?
As traditional financial institutions continue to explore blockchain applications, the development of Tokenized Assets may be concentrated in the following areas.
Tokenized Treasury Bonds: U.S. Treasury bonds have a mature financial market foundation and clear yield references, making them an important asset class in the RWA market. Through tokenization, Treasury-related products can enter the blockchain ecosystem and provide new asset allocation channels for digital asset investors and institutions.
Tokenized Money Market Funds: Enterprises and institutions need to manage daily operating funds. Tokenized money market funds have the opportunity to combine traditional cash management products with on-chain settlement to form new financial service models.
Tokenized Stocks: Stock tokenization can explore the combination of traditional securities markets and blockchain trading infrastructure. However, different products may represent direct securities rights or may simply be financial instruments that track the prices of related assets, and investors need to distinguish their legal nature.
Tokenized Real Estate and Private Credit: Real estate and private credit markets usually face problems such as high investment thresholds and complex trading processes. Through asset tokenization, there may be opportunities in the future to improve share registration and fund management efficiency, but underlying asset valuation, legal enforcement, and liquidity remain important challenges.
Overall, the development of RWA is not just about increasing the number of assets on blockchain, but more importantly about enabling these assets to achieve practical financial applications under compliant conditions.
VII. What Risks Do RWA and Tokenized Funds Face?
Although RWA and Tokenized Funds have development potential, investors cannot ignore the risks behind them.
Regulatory Risk: Different countries and regions have different regulatory requirements for securities, funds, digital assets, and token issuance, and whether a product can be legally issued and traded depends on the specific jurisdiction.
Liquidity Risk: The fact that on-chain tokens can be transferred does not mean that the underlying fund assets can be redeemed unconditionally at any time. Funds may have trading hours, redemption cycles, and quota limits.
Smart Contract Risk: If smart contracts have vulnerabilities, they may affect token issuance, transfer, and asset management processes.
Custody Risk: Underlying assets usually still rely on banks, custodians, or fund managers, and blockchain cannot automatically eliminate the credit and operational risks of traditional financial institutions.
Valuation Risk: There may be differences among token prices, fund net values, and underlying asset values, and investors need to understand the specific valuation mechanism.
Therefore, to judge whether a tokenized fund is worth attention, one should not only look at assets under management and on-chain trading volume, but also understand its legal structure, asset custody method, and redemption conditions.
VIII. Will RWA Become a Bridge Between Traditional Finance and Cryptocurrency?
The growth of Spiko SAFO's scale shows that tokenized funds are attracting more traditional corporate and institutional capital. At the same time, institutions such as BlackRock, Circle, and Franklin Templeton are also promoting the combination of traditional financial products and blockchain infrastructure.
In the future, the focus of RWA development may gradually shift from simply issuing tokenized assets to the actual use of assets, including on-chain settlement, collateral financing, liquidity management, and cross-platform financial services.
However, RWA is still in the development stage. Regulatory frameworks, underlying asset quality, investor protection, and market liquidity will determine whether this field can achieve larger-scale application.
For the cryptocurrency market, RWA provides a new path connecting traditional finance and DeFi. Tokenization may become an important technological foundation driving the development of this path.
As more financial institutions participate, tokenized Treasury bonds, money market funds, and other Tokenized Assets are expected to become components of the future digital financial market that deserve continued attention.
Frequently Asked Questions (FAQ)
Q1. What is RWA?
A: RWA is the abbreviation of Real World Assets, referring to the tokenization of rights in real-world financial or physical assets through blockchain technology, enabling them to be recorded and managed in the form of digital tokens.
Q2. What is the difference between Tokenized Funds and ordinary funds?
A: The core difference lies in the way shares are recorded and managed. Ordinary funds mainly manage shares through traditional financial registration systems, while Tokenized Funds can use blockchain to record fund shares and support on-chain transfers that comply with product rules.
Q3. Are Money Market Funds stablecoins?
A: No. Money market funds invest in short-term financial assets, and investors hold fund shares; stablecoins usually aim to maintain a specific currency value. Their legal structures, sources of return, and risks are all different.
Q4. Does BlackRock BUIDL belong to RWA?
A: Yes. BUIDL is a tokenized fund product launched by BlackRock that issues fund shares through blockchain and is an important case in the RWA and Tokenized Funds field.
Q5. Does RWA still have room for development in the future?
A: RWA still has considerable room for development, especially in areas such as tokenized Treasury bonds, money market funds, stocks, and private credit. However, future growth depends on regulatory policies, the degree of institutional participation, asset liquidity, and actual application demand.