Tokenized Assets Fail to Gain Traction Despite Growing Hype

Overcoming Structural Barriers

Financial institutions are expanding their tokenized real-world asset offerings, but growth remains slow. Franklin Templeton's Chetan Karkhanis has been examining the market. He spoke to experts on July 22, 2026, to understand the challenges.

The tokenized asset market is evolving, with various financial institutions entering the space. However, despite the increasing hype, the market is yet to gain significant traction. Chetan Karkhanis, a key figure at Franklin Templeton, is closely watching the developments.

Karkhanis believes that several structural barriers are hindering the growth of tokenized assets. One major issue is the lack of standardization across different platforms. This makes it difficult for investors to compare and switch between different tokenized assets. Moreover, regulatory clarity is still lacking in many jurisdictions, creating uncertainty for investors.

Can Regulatory Clarity Unlock Growth?

The absence of a well-developed secondary market for tokenized assets is another significant barrier. Investors are hesitant to invest in assets that may not be easily sold or transferred. Karkhanis notes that the development of a robust secondary market is crucial for the growth of the tokenized asset market.

Regulatory clarity is essential for the tokenized asset market to mature. Clear guidelines would help investors understand the risks and benefits associated with tokenized assets. Karkhanis expects that as regulations evolve, more investors will enter the market.

The tokenized asset market is expected to grow significantly once the existing barriers are addressed. As the market matures, it is likely to attract more investors, leading to increased liquidity and a more robust ecosystem.

Frequently Asked Questions

What is holding back the growth of tokenized assets? The lack of standardization, regulatory clarity, and a well-developed secondary market are major barriers to growth.

Will regulatory clarity help the tokenized asset market? Yes, clear guidelines would help investors understand the risks and benefits, leading to increased investment.

How important is a secondary market for tokenized assets? A robust secondary market is crucial for the growth of the tokenized asset market, as it allows investors to easily buy and sell assets.