The Growing Momentum Behind Asset Tokenization

How Blockchain Is Reshaping Ownership, Finance, and the Advisory Landscape

In the past year, a once-niche idea has started moving firmly into the mainstream of global finance: the tokenization of assets. From Wall Street giants like BlackRock to central banks and regulators, institutions are now signaling that the digital representation of real-world assets on blockchain networks may soon redefine how ownership, investment, and settlement are managed worldwide.

What Is Tokenization?

Tokenization is the process of creating a digital (on-chain) representation of a real-world asset (RWA) on a blockchain or distributed ledger. In essence, ownership or a claim to an asset, whether a property, bond, share, or fund unit, is represented as a digital token that can be stored, transferred, or traded using blockchain infrastructure.

This approach enables:

• Fractional ownership of high-value assets.

• Programmatic automation via smart contracts.

• Faster settlement and lower costs, with blockchain serving as a single source of truth.

• Global access and transparency, allowing investors and regulators to track transactions in real time.

Typical tokenized RWAs include real estate, private credit funds, corporate or government bonds, equities, commodities, and other tangible or intangible assets.

Strong Institutional Signals: BlackRock and Beyond

Few developments have captured attention like Larry Fink’s statement that we are “just at the beginning of the tokenization of all assets.” Under his leadership, BlackRock has not only acknowledged tokenization but is also actively investing in it.

• BlackRock’s USD Institutional Digital Liquidity Fund.

• The firm is also reportedly exploring tokenized iShares ETFs, enabling investors to access traditional stocks and bonds through digital wallets.

Other major players, Goldman Sachs, BNY Mellon, J.P. Morgan, and Franklin Templeton, are developing similar infrastructures for tokenized funds and digital-asset custody.

Why Tokenization Matters, and Why Now?

• Efficiency and cost reduction.  

Tokenization can eliminate intermediaries such as brokers, custodians, and transfer agents, enabling near-instant settlement and lower transaction costs.

• Broader access:

Fractional ownership makes previously illiquid or high-barrier asset classes available to smaller investors.

• Transparency and compliance:

Blockchain’s immutable ledger strengthens auditability and real-time oversight, appealing to regulators and institutional investors alike.

• Digital-native market growth:

Younger generations accustomed to digital assets can now invest in tokenized “real-world” securities through wallet-based platforms, bridging the gap between crypto and conventional investing.

In short, the convergence of blockchain technology, institutional adoption, and investor demand for efficiency is pushing this transformation forward.

Benefits and Challenges

Key Benefits:

• Liquidity for traditionally illiquid assets.

• Automation of complex asset-management workflows.

• Global reach with 24/7 markets.

• Lower friction and improved transparency.

Key Challenges:

• Regulatory uncertainty across jurisdictions, definitions of “security tokens” differ widely.

• Custody and technological risk, including smart-contract vulnerabilities and key management.

• Market maturity, secondary trading remains limited, and valuation standards are evolving.

• Tax and accounting ambiguity, jurisdictions are still defining how tokenized holdings should be treated for reporting and taxation purposes.

Accounting, Tax, and Advisory Implications

For professionals in accounting, taxation, and business advisory, tokenization represents both a challenge and a new frontier of opportunity:

1. Tax Treatment & Structuring:

   • How gains or losses on tokenized assets are recognized may depend on jurisdiction and whether tokens are classified as securities or property.

   • Cross-border holdings (for instance, between U.S. and Middle Eastern investors) introduce treaty and reporting complexities.

2. Accounting & Audit:

   • Tokenized assets introduce 24/7 trading and fractional ownership, complicating traditional balance-sheet cutoffs and valuation.

   • New audit tools are needed to verify on-chain ownership and transaction integrity.

3. Advisory Services:

   • Clients seeking to tokenize assets, whether real estate, investment vehicles, or funds, will need structuring, compliance, and cross-jurisdictional advice.

   • Firms can help design governance and reporting frameworks for digital asset issuance, custody, and investor communication.

4. Compliance & Risk:

   • Advisors can guide clients through AML/KYC integration, digital-wallet security, and emerging disclosure standards.

A Strategic Opportunity for Consulting Firms

At Voyage Consulting, we view tokenization as a natural evolution in financial infrastructure, one that merges accounting precision, tax compliance, and digital innovation.

For our clients, business owners, investors, and international organizations, this transformation offers:

• Emerging tax-planning opportunities around digital asset treatment.

• The need for robust governance and audit frameworks for tokenized holdings.

As the world’s largest institutions build the rails for on-chain finance, trusted advisors & Consultants must be ready to interpret, structure, and safeguard this new ecosystem.