RWAfi 101: Tokenization vs. Securitization

Both turn real-world assets into financial instruments, but the mechanics and outcomes couldn’t be more different.

Securitization pools assets (like mortgages) into opaque products, often controlled by intermediaries and restricted to institutional buyers. The structure is rigid, the pricing obscure, and access tightly gated.

Tokenization, on the other hand, brings assets Onchain as digital tokens. These tokens can represent ownership, cash flows, or rights with transparent logic, real-time settlement, and broad accessibility.

This makes assets liquid, composable, and accessible in ways legacy finance can’t replicate.