- Tiger Research says financial institutions should pursue offshore RWA tokenization to gain experience before local rules mature.
- Hong Kong, Singapore, and the U.S. offer the clearest regulatory frameworks for issuing tokenized securities.
- The report warns firms that delay RWA adoption risk falling behind competitors already expanding into global markets.
The growth of the real-world asset (RWA) tokenization market has prompted financial institutions to look beyond their home markets.
According to a new report from Tiger Research, regulatory uncertainty continues to slow domestic adoption in many countries.
The report estimates the global RWA tokenization market reached between $25 billion and $36 billion in the first half of 2026. Growth has been driven by benefits such as automated interest payments, faster settlement, and broader investor access.
However, many jurisdictions still lack legal frameworks that recognize tokenized securities. As a result, institutions face three choices: wait for regulations, experiment through regulatory sandboxes, or expand into overseas markets.
Related: New York Life Ventures Into Tokenization Through a Partnership With Centrifuge
Offshore Markets Offer the Fastest Path
Tiger Research argues that financial institutions should prioritize gaining operational experience in overseas markets instead of waiting for domestic legislation.
While waiting for local rules reduces regulatory risk, the report warns it could also mean missing early market opportunities. Regulatory sandboxes provide room for experimentation, but they rarely support full-scale issuance of standardized tokenized securities.
Instead, Tiger Research recommends issuing digital bonds and other tokenized assets in jurisdictions with established regulations. Building experience in mature markets can help firms develop expertise and gain a competitive advantage before domestic rules are finalized.
Tokenization Requires More Than Blockchain
The report emphasizes that tokenization is more than placing traditional assets on a blockchain. Successful international issuance requires careful legal and operational planning.
Institutions must decide where to establish offshore operations, obtain the necessary licenses, and determine which assets to tokenize. They also need to identify target investors, choose settlement currencies, and design custody, governance, and post-issuance processes.
According to Tiger Research, decisions made early in the process influence every later stage. Thorough planning is therefore essential for successful RWA offerings.
Hong Kong, Singapore, and the U.S. Lead
Tiger Research identifies Hong Kong, Singapore, and the United States as the most attractive destinations for offshore tokenization.
Hong Kong stands out for its comprehensive regulatory framework, strong operational infrastructure such as HSBC Orion, and government support for tokenized securities. Recent rule changes allowing secondary trading of security tokens on licensed virtual asset exchanges have further strengthened its position.
Singapore is recognized for its clear regulatory framework under the Securities and Futures Act. Its Variable Capital Company structure also simplifies fund management and asset segregation. However, the report notes that licensing requirements remain demanding.
The United States has become more attractive following greater regulatory clarity from the SEC and CFTC in 2026. Instead of obtaining licenses independently, issuers can work with platforms such as Securitize to issue tokenized securities under existing regulatory exemptions. BlackRock’s BUIDL fund is highlighted as a leading example.
Related: $60B Tokenized RWA Market Shows No On-Chain Activity, Report Finds
On-Chain Platforms Provide Another Option
Beyond setting up operations in regulated jurisdictions, Tiger Research highlights on-chain native platforms as an alternative route.
Platforms such as Ondo Global and Plume allow institutions to use existing compliant infrastructure rather than creating new offshore entities. The report says this approach can speed up market entry while providing access to decentralized finance liquidity.
However, Tiger Research cautions that these platforms introduce additional structural complexity. Institutions may also need to adapt to platform-specific operational and governance requirements that differ from traditional financial markets.
Early Preparation Could Be a Competitive Advantage
Tiger Research concludes that financial institutions should start building RWA capabilities now rather than waiting for comprehensive domestic legislation.
The report notes that major U.S. financial institutions are already expanding tokenization initiatives across blockchain networks including Canton, Solana, and Ethereum. Firms in jurisdictions with less-developed regulations may need six months to more than a year to establish offshore operations, complete legal reviews, design tokenized products, and secure investors.
According to Tiger Research, legal preparation remains the biggest obstacle. However, delaying action until domestic regulations are finalized could leave firms behind competitors that are already gaining practical experience in global tokenized asset markets.
Related: Bitget CEO Gracy Chen Outlines Universal Exchange Vision Focused on AI and Tokenization
Please note, this site provides content for entertainment purposes only and does not offer financial advice. Read more here
