According to TechFlow, top Wall Street talents are working hard to tokenize real-world assets, but they face a choice: to act cautiously or to venture into the unknown world of DeFi.

Steven Hu, digital asset expert at Standard Chartered Bank, said that fully decentralized tokenization is neither realistic nor ideal for banks, and a centralized management authority is needed to ensure legality and compliance.

Standard Chartered Bank predicts that the tokenization market could reach $30 trillion by 2034. Currently, about $13.2 billion of real-world assets have been tokenized, with private credit leading the way at $8.4 billion.

BlackRock and Franklin Templeton are leading the way in blockchain-based government securities, attracting nearly $1 billion in assets. Franklin Templeton hopes its BENJI Token will be traded across the crypto ecosystem.

BlackRock has raised $527 million for its digital currency market fund since March. Carlos Domingo of Securitize Markets attributes the fund’s success to its use of Ethereum.

Jeremy Ng of OpenEden said DeFi is the horse that pulls the tokenization of real-world assets. Singapore's financial regulator allowed 24 major banks to experiment with tokenization in its sandbox, and Goldman Sachs conducted bond operations on its private blockchain.

Roger Beston of Franklin Templeton believes that public blockchains have great potential to improve market efficiency. The boundaries between traditional banks and the new world of cryptocurrency are becoming increasingly blurred.