Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Tokenization Offers a Solution to Crypto's Regulatory Challenges

Tokenization Offers a Solution to Crypto's Regulatory Challenges

Bitget-RWA2025/11/06 15:28
By:Bitget-RWA

- Tokenization bridges crypto innovation and regulation by digitizing assets into blockchain-based tokens, enabling real-time compliance with AML and investor protection rules. - Case studies show tokenization streamlines supply chains (Asetek) and secures R&D pipelines (Vertex Pharmaceuticals) while embedding jurisdictional compliance into smart contracts. - Despite challenges like interoperability risks, EU's MiCA framework and industry collaboration signal progress toward harmonizing tokenization standa

The convergence of blockchain and established financial systems is undergoing a significant transformation, with tokenization emerging as a promising link between the world of cryptocurrencies and regulatory authorities. Historically, the industry has struggled with regulatory compliance, but recent progress indicates that turning assets into blockchain-based tokens could help decentralized platforms meet the expectations of global regulators.

Tokenization is increasingly viewed as a remedy for persistent transparency and accountability gaps within crypto markets. By transforming assets such as real estate, equities, or commodities into programmable digital tokens, this approach allows for instant monitoring of ownership and transaction histories. Such features support regulatory goals like anti-money laundering (AML) compliance and investor safeguards, which have been challenging to enforce in decentralized environments, as highlighted in

. For example, tokenized assets can be programmed to automatically adhere to local regulations, including limiting transactions to qualified investors or integrating compliance protocols within smart contracts. These functionalities may ease tensions between crypto service providers and regulators, paving the way for greater institutional participation.

Recent industry developments further illustrate tokenization’s potential to bridge the gap between crypto and regulation. In the third quarter of 2025, Asetek, a prominent provider of liquid cooling technologies, showcased how tokenization can optimize supply chain operations, as reported by

. The company landed a $35 million deal for advanced cooling products, a transaction that could benefit from tokenized asset tracking to provide transparent oversight of parts and payments. In healthcare, the nebulizer market is expected to expand at a 5.98% compound annual growth rate through 2033, according to , fueled by the rise of home-based care. Tokenization could support this trend by offering secure, auditable records of device usage and patient information, helping address compliance and privacy requirements.

Pharmaceutical firms such as Vertex Pharmaceuticals are also investigating tokenization for managing intricate research and development processes, as mentioned in

. With an 11% increase in Q3 revenue, Vertex’s focus on R&D could be enhanced by tokenizing intellectual property, facilitating secure collaboration while upholding regulatory standards for data security. At the same time, technology companies like RingCentral are utilizing AI-powered solutions to boost profitability, according to , and tokenization could further support these efforts by establishing verifiable digital identities for users, in line with new cybersecurity rules.

Nevertheless, obstacles persist. Regulators must address the technical intricacies of blockchain to ensure that tokenization does not introduce new threats, such as interoperability challenges or weaknesses in smart contracts. Achieving international consistency in tokenization standards will also be essential to prevent fragmented regulatory landscapes. Still, the increasing cooperation between industry stakeholders and regulators—as seen with initiatives like the EU’s Markets in Crypto-Assets (MiCA) regulation—points toward greater alignment.

As tokenization evolves, its capacity to integrate compliance directly into asset management processes could be crucial for merging crypto innovation with regulatory requirements. By enhancing transparency, traceability, and governance, tokenization has the potential to move crypto from a loosely regulated space to a more structured, institutionally accepted asset class.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Solana News Update: Infrastructure Improvements and ETFs Drive Solana’s Expansion, Yet Price Drops Challenge Positive Outlook

- Solana's liquidity surges via $280M ETF inflows and infrastructure upgrades, including 20x faster archive calls and 99.95% uptime from Alchemy. - USD1 stablecoin challenges USDC's $9B dominance on Solana through Bonk/Raydium partnerships and $2.91B circulation growth since April 2025. - Despite $5B projected ETF inflows, Solana's price fell to $175 amid bearish technical indicators and 30% Q3 user base decline, raising sustainability concerns. - Regulatory clarity from the 2025 GENIUS Act and Tangem's US

Bitget-RWA2025/11/06 17:20
Solana News Update: Infrastructure Improvements and ETFs Drive Solana’s Expansion, Yet Price Drops Challenge Positive Outlook

Stablecoin Staking Boom Prompts Hourglass to Halt Operations, Emphasizing Safety Above Rapid Growth

- Hourglass paused Phase 2 stablecoin deposits after $650M in deposits exceeded the $500M cap, prioritizing security amid high demand. - The platform restricted eligibility to KYC-compliant deposits, excluding Etherscan/programmatic transactions to mitigate regulatory risks. - The pause reflects growing industry focus on compliance following 2022's UST collapse, though reactions remain mixed over delayed rewards. - Hourglass aims to strengthen its tokenomics and market position through controlled scaling,

Bitget-RWA2025/11/06 17:20
Stablecoin Staking Boom Prompts Hourglass to Halt Operations, Emphasizing Safety Above Rapid Growth

Zcash Latest Updates: Privacy-Focused Zcash Joins the Surge of Institutional Crypto Interest

- Zcash (ZEC) surged to a $490 peak in 2025, surpassing $8B market cap, driven by technical momentum, privacy upgrades, and industry trends toward financial privacy. - Electric Coin Co. plans Q4 2025 enhancements, including ephemeral addresses and P2SH wallets, to strengthen ZEC's 20–25% shielded transaction model. - Zcash's rise coincides with Bitcoin's institutional adoption, positioning it as a flexible privacy alternative to Monero, with market cap briefly exceeding XMR's. - Despite bullish indicators,

Bitget-RWA2025/11/06 17:20

Digitap Brings the Future of Crypto Utility to You Now, Surpassing Competitors

- Digitap ($TAP) leads 2025 crypto bull run with $1. 3M presale, Visa-backed debit cards, and a deflationary token model. - Outperforms peers like Cardano (ADA) and Avalanche (AVAX), which dropped 30-40% due to weak adoption and lack of catalysts. - Targets 1.4B unbanked adults with no-KYC onboarding and 1% cross-border fees, disrupting a $290T payments market. - Tokenomics allocate 50% profits to buybacks, with 90M+ tokens sold and analysts projecting $15 price target for 42M users.

Bitget-RWA2025/11/06 17:20
Digitap Brings the Future of Crypto Utility to You Now, Surpassing Competitors