Cardano founder Charles Hoskinson has predicted that RWA tokenization will be the next narrative to drive the crypto market over the next five years.
He made this statement at the ongoing Korea Blockchain Week (KBW) 2025, which began on September 22. During an interview with CoinDesk, Hoskinson highlighted how tokenization will shape the future of blockchain technology and the role the United States will play in driving this emerging narrative.
$10T Real-World Assets Can Be Tokenized
A staggering $10 trillion—that is the value of real-world assets that Hoskinson believes can come on-chain. Currently, the total cryptocurrency market cap stands below $4 trillion, meaning that approximately 2.5 times the current market value will enter the industry in the foreseeable future.
Remarkably, the RWA tokenization niche is gaining momentum, with the prospect that it is feasible to tokenize assets existing in the traditional financial system becoming more practicable. This sector has the support of BlackRock, the world’s largest asset manager, with its CEO, Larry Fink, suggesting that everything can be tokenized.
Interestingly, Hoskinson shares this sentiment too. He asserted that this sector would send the crypto industry to newer heights over the next five years. He also believes that the United States would play a crucial role in giving the tokenization narrative the spotlight it deserves.
The United States Will Lead the Tokenization Sector
However, as lucrative as tokenization can be to the crypto sector, Hoskinson noted that the details of its execution remain unclear. The Cardano founder says this is because of an existing knowledge gap between intent and output.
“We don’t quite have the understanding of how to make securities work in the blockchain space,” Hoskinson stated.
Specifically, some of the grey areas he claims exist are disclosures, broker-dealer workings, custody, and KYC for cross-border settlements. Again, he noted that the United States is working on these details and, when it does sort them out, will power the multi-trillion-dollar sector.
“We’ll (the US) create one unified securities market across the entire world,” the Cardano founder stated, insisting it would lead most of the growth in crypto in the next five years.
Remarkably, Hoskinson’s comments align with the growing belief in the crypto industry that tokenization will power the future of blockchain. Prominent fintech firm Ripple also highlighted predictions that the RWA tokenization sector could expand to $19 trillion by 2033.
The Cleanest Way to Invest in Tokenization
While Hoskinson noted it would lead to a broader market rally, recent reports have revealed the best ways to gain exposure to the impending RWA tokenization boom. Bitwise CIO Matt Hougan revealed in a note in July that XRP and Ethereum are the “cleanest way” of investing in tokenization.
With Ripple and the XRPL Ledger appropriately positioned to lead the sector, Hougan believes XRP would benefit as tokenization grows. Ethereum’s institutional traction and robust smart contract ecosystem will also encourage tokenization, rewarding Ether holders.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
