Tokenisation has been widely misunderstood for too long. Many associate it with unstable cryptocurrencies or regard it as mere hype. This lack of clarity is, in my opinion, a significant hindrance to its acceptance. Tokenisation is not a speculative coin or a digital lottery; it represents the evolution of financial instruments, based on the same principles as traditional shares, bonds, and funds, but improved by blockchain’s efficiency and transparency.
Tokenisation is not cryptocurrency
The first important distinction is quite straightforward: while both tokenisation and cryptocurrency utilize similar technology, they have fundamentally different functions. Cryptocurrencies largely rely on market sentiment and speculation, whereas tokenised real-world assets (RWAs) denote ownership of tangible investments that yield measurable returns. For instance, the value of a house in Dubai isn’t likely to plummet by 90% in a matter of hours, a common occurrence in cryptocurrency markets. Tokenisation effectively enhances real-world economics through blockchain’s efficiency and liquidity.
Structure, not chaos
Some still view this sector as chaotic, yet my experience indicates that the UAE has established a level of order within this space. Having worked in markets like Hong Kong and London, I consider VARA’s regulatory framework to be the most thorough I have encountered globally, providing certainty for both investors and issuers. Regulation should not be seen as a hindrance to innovation; rather, it is a catalyst for it. It defines the guidelines, ensures rigor, and safeguards investors. This certainty differentiates tokenisation in Dubai from the unregulated and hype-driven initiatives found elsewhere.
For cautious investors, I would emphasize this: it’s not about the risks; it’s about seizing the opportunity to invest in assets you genuinely believe in. Tokenisation opens doors to high-quality investments that were once beyond reach, providing full transparency regarding ownership—down to the specifics of a property unit. This approach is less about taking reckless chances and more about gaining access to desired investments with greater clarity than most traditional investment avenues offer.
Accessible for everyone
There’s a common misconception that tokenisation is exclusive to technology enthusiasts. This should not be the case. In our platform, we evaluated usability against a simple metric: could my mother navigate it? The answer was affirmative. She could log in, view a product, learn about it, make an investment, and become a stakeholder without even needing to notice that blockchain technology was functioning in the background. Just as one does not need to understand the intricacies of TCP/IP to use the internet, there is no requirement to grasp blockchain technology in order to invest in real assets.
Revolutionizing fractional ownership
Fractional ownership is not a novel concept; shares and funds have utilized it for decades. However, what is innovative is enabling everyday investors to gain direct access to high-quality assets that were once exclusive to the wealthy. I have witnessed the moment when individuals realize they can acquire a portion of a premium property or even a racehorse. Suddenly, investing transforms into an inclusive opportunity rather than an exclusive privilege.
Beyond conventional investment options
Some investors feel more secure with traditional investments—managed portfolios, opaque structures, and the like. However, tokenisation fundamentally offers what conventional systems cannot: transparency and auditability. A tokenised real estate asset remains a property; the blockchain maintains an immutable and verifiable record of ownership and value that can be scrutinised in real-time.
Tokenisation does not fabricate value; it enhances good assets, making them more accessible, transparent, and liquid than ever before.
Substantial growth or just hype
Is this merely a transient trend? The data indicates otherwise. According to McKinsey, tokenised markets could grow to between $2 trillion and $4 trillion by 2030, expanding from around $24 billion in 2025. The Dubai Land Department anticipates that tokenised properties could account for 7% of all real estate transactions by 2033—approximately $16 billion. Additionally, institutions such as BlackRock and Franklin Templeton are already issuing tokenised investment funds. These phenomena aren’t fleeting; they represent the evolution of the financial system.
Maintaining control
There are asset owners who worry about “losing control” through tokenisation. In actuality, tokenisation provides enhanced tools: programmable ownership structures, clear visibility of asset holders, and streamlined compliance processes. This results in flexibility for issuers rather than disorder.
The liquidity dilemma
Achieving liquidity is the ultimate goal. Secondary markets for tokenised assets are not a far-off promise; they exist today. With established regulatory frameworks, an increasing institutional presence, and a rise in retail adoption, compliant secondary trading systems are currently operational. Platforms are already facilitating peer-to-peer token exchanges, and as the ecosystem develops, liquidity will deepen. The future of asset liquidity isn’t on the horizon; it is already being established.
Beyond real estate assets
While real estate often dominates discussions, it is not the sole area ripe for tokenisation. Industries such as sports, art, and commodities—as well as decentralized infrastructure—are also primed for this transformation. I believe that infrastructure projects allowing communities to co-own and benefit from shared resources may turn out to be surprisingly impactful in the coming years.
Not every project is viable
Having collaborated with regulators across Asia, Europe, and the Middle East, I can confidently say that the UAE maintains a leading position in this arena. Other regions are catching up, but VARA’s specially designed framework remains a standard for the industry. Regulation isn’t about tokenizing every asset indiscriminately; often, 90% of proposals I review lack practicality. Tokenisation cannot convert a poor deal into a good one; however, it can elevate a solid deal to a great one.
The primary misconception
If I could eliminate one myth, it would be the belief that tokenisation is simply another cryptocurrency venture. It is not. Tokenisation allows investors to own portions of genuinely appreciating assets—such as real estate, racehorses, and income-generating infrastructures—with complete transparency and at accessible entry points. This is not speculative trading; it is a strategic investment in assets with proven histories.
If I had just 30 seconds with a skeptic, I would pose this inquiry: if your money is resting in the bank while losing 5 percent of its value due to inflation this year, why not invest it in a regulated offering linked to a real, appreciating asset? That is the opportunity that tokenisation presents.
The writer serves as the CEO and co-founder of Tokinvest
Further insights: From bricks to blockchain: Views on Dubai’s real estate transformation