ChainThink report, December 13: Greg Cipolaro, Global Research Head at NYDIG, stated in a report released Friday that stock tokenization will not immediately deliver substantial gains to the crypto market, but its benefits will gradually emerge if such assets are better integrated with blockchain technology.

"The initial revenue generated by these underlying networks—such as Ethereum—is modest, but it will grow in tandem with improvements in asset accessibility, interoperability, and composability," Cipolaro wrote in the report. He added that early revenue primarily stems from transaction fees generated by tokenized asset trades, while the host blockchain will also experience "increasingly stronger network effects" due to rising storage demand.

"In the future, these real-world assets could be integrated into decentralized finance ecosystems as collateral for lending, lendable assets, or tradable instruments," Cipolaro said, "but this will require time, contingent upon technological advancement, infrastructure maturation, and regulatory evolution."

He also noted that building composability- and interoperability-ready tokenized assets is no simple task, given their "vast differences in form and function" and their distribution across public and private networks. For example, Canton Network, a private blockchain created by Digital Asset Holdings, currently hosts $380 billion worth of tokenized assets—representing 91% of the total "representational value" of all real-world assets. In contrast, Ethereum, the most dominant public blockchain, has deployed $12.1 billion in real-world assets.

Cipolaro emphasized that even on open networks like Ethereum, the design of tokenized assets can vary significantly. "These assets typically fall under securities classification and still rely on traditional finance infrastructure such as brokers, KYC/qualified investor verification, whitelisted wallets, and transfer agents." However, he also highlighted that enterprises are leveraging blockchain technology to achieve advantages including near-instant settlement, 24/7 operations, programmable ownership, transparency, auditability, and optimized collateral efficiency.