Trump policies tokenized assets. RWAs to Revolutionize Finance with stablecoins and tokenized products in focus, and with regulatory shifts in the US paving the way for 2025 growth
Trump policies tokenized assets. RWAs are emerging as a major point of interest for traditional finance companies looking to create on-ramps into DeFi, bringing liquidity, accessibility, and transparency through RWA transactions to the frontier.
Just four days before Donald Trump has sworn in as U.S. President-elect on January 20, Cointelegraph interviewed Eli Cohen, general counsel of Centrifuge, the tokenizing platform, on the trends he anticipates will take place in 2025.
RWAs provide “the underlying yield for the large stablecoins in DeFi,” Cohen said, mainly in tokenized Treasurys, but that’s expected to shift in 2025 as yields come into demand.
Trump policies tokenized assets. He believes that the increasing demand for yields will fuel a more diverse range of tokenized products.
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An unyielding market
Cohen pointed to high Treasury rates and rising competition among stablecoin issuers driving the market toward “higher yielding, still safe investments.”
This evolution also stands to benefit stablecoins that have relied on tokenized Treasurys for yields, Cohen said.
Lifting restrictive policies, like Operation Chokepoint 2.0, Cohen says, is “a very public renouncement and repudiation” the incoming Trump administration will deliver that will favor RWA market growth.
“This will unlock banking and brokerage channels to drive the development of far more tokenized products.”
Gensler’s departure, Trump policies tokenized assets
Regulatory conditions should improve for RWAs in 2025, particularly with what Cohen described as the end of the “open hostility of the Gensler SEC.”
Cohen added that change under Gary Gensler’s leadership of the US Securities and Exchange Commission to new stewardship of the agency appointed by Trump will look “very different.” It could ease “internal resistance” in TradFi firms toward crypto markets.
“Will the Trump SEC go to the lengths to approve the retail offering of the tokenized security?” he asked. “We will also closely monitor any enforcement office stablecoin rules by EU authorities,” Cohen said.
Mantra and Damac sign $1B deal to tokenize Middle Eastern assets
RWA progress in 2025
There is already some momentum in cash flow tokenization. For instance, in a $1 billion tokenization deal with Damac and Mantra for Middle Eastern assets.
He is hopeful that crypto will not face issues from regulators as intensely as in prior instances, stating, “Any security concerns related to crypto will be ‘mitigated over time as crypto service providers mature,” adding that centralized exchanges like Coinbase and Kraken “are already used by governmental authorities.”
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