Why Emerging Markets Are Set to Lead Real-World Asset Tokenization in 2026

Real-world asset (RWA) tokenization is expected to expand notably in emerging markets by 2026, propelled by unique financial inclusion challenges and infrastructural gaps. This development is occurring alongside evolving regulatory frameworks and growing institutional interest, suggesting a shift in how capital flows into traditionally underserved economies.

What happened

Recent analyses, including reporting from Cointelegraph and institutional filings, confirm that emerging markets are poised to become frontrunners in the adoption of RWA tokenization by 2026. The primary drivers identified include the high prevalence of unbanked or underbanked populations in these regions, which creates demand for alternative financial services, such as blockchain-enabled tokenization platforms. According to the World Bank’s Global Findex Database 2021, significant portions of populations in emerging economies lack access to traditional banking, underscoring the potential for decentralized financial solutions.

Institutional investors and asset managers have begun to reflect this trend in their portfolios. Filings from major ETF issuers such as BlackRock and VanEck in 2023 and 2024 show an increasing inclusion of tokenized real-world assets, with a focus on emerging market assets as underlying collateral. This indicates a strategic shift toward diversifying portfolios by accessing previously illiquid markets through tokenization.

Regulatory developments have also played a key role. Countries including Singapore, the United Arab Emirates (UAE), and Brazil have introduced clearer regulatory guidelines around digital asset tokenization throughout 2023. For example, Singapore’s Monetary Authority of Singapore (MAS), the UAE’s Securities and Commodities Authority (SCA), and Brazil’s Comissão de Valores Mobiliários (CVM) have all issued statements or updates aimed at facilitating market entry and legitimizing tokenized assets. These frameworks reduce investor uncertainty and support cross-border investment flows.

Further, an International Monetary Fund (IMF) working paper from 2023 highlights that tokenization can improve liquidity, transparency, and fractional ownership, which are expected to attract increased global capital flows into emerging market tokenized assets.

Why this matters

The convergence of financial exclusion, infrastructural gaps, and technological innovation in emerging markets creates a distinctive environment where RWA tokenization can address longstanding challenges. By enabling fractional ownership and improving liquidity, tokenization platforms can potentially democratize access to assets that have traditionally been out of reach for a large segment of the population.

From a market structure perspective, the growing involvement of institutional investors in tokenized emerging market assets signals a new avenue for portfolio diversification and risk management. The inclusion of these assets in ETFs and funds may help integrate emerging markets more deeply into global capital markets, potentially increasing capital efficiency and reducing barriers to entry.

Regulatory clarity, as seen in jurisdictions like Singapore, UAE, and Brazil, is foundational for scaling tokenization efforts. Clear rules can mitigate legal and operational risks, encourage innovation, and foster investor confidence. This regulatory progress could position emerging markets as competitive hubs for digital asset innovation, attracting further investment and technological development.

Moreover, the expected increase in global capital flows into tokenized assets from emerging markets could have broader economic implications. Enhanced liquidity and transparency might improve price discovery and reduce information asymmetries, while fractional ownership could expand financial inclusion by allowing smaller investors to participate in markets previously limited by high entry costs.

What remains unclear

Despite these developments, several significant uncertainties persist. The exact scale and speed of RWA tokenization adoption in emerging markets by 2026 remain unknown, largely because regulatory evolution and technological readiness vary widely across countries. While some jurisdictions have made regulatory strides, many others still lack clear frameworks, which could delay or complicate adoption.

It is also unclear how emerging market governments will balance the need for regulation to protect investors with the desire to foster innovation. In countries with less developed legal systems, this balance will be particularly challenging and could influence the pace and nature of tokenization growth.

Another open question concerns the interaction between tokenization and traditional financial institutions. The available research does not detail whether incumbent banks and asset managers will integrate tokenized assets into their existing business models or resist these new paradigms, which could affect market dynamics and adoption rates.

Additionally, the role of international regulatory coordination in facilitating cross-border capital flows into tokenized emerging market assets has not been fully explored. Without harmonized standards, investors and issuers may face fragmented compliance requirements, potentially limiting the global scalability of tokenization platforms.

Finally, there is limited data on transaction volumes, user adoption rates, risk profiles, and the potential systemic risks associated with rapid tokenization expansion in emerging markets. The long-term macroeconomic impacts on both emerging economies and global capital markets remain speculative at this stage.

What to watch next

Further regulatory updates and clarifications from emerging market authorities, particularly in jurisdictions with nascent digital asset frameworks.
New ETF and fund filings that explicitly include tokenized emerging market assets, providing insight into institutional adoption and asset performance.
Technological developments and platform launches that enhance accessibility and security of RWA tokenization in emerging markets.
Data releases on user adoption rates, transaction volumes, and liquidity metrics from tokenization platforms operating in emerging markets.
International regulatory dialogues or agreements aimed at harmonizing rules for digital asset tokenization to facilitate cross-border investment.

While emerging markets show strong potential to lead RWA tokenization growth by 2026, the trajectory depends on how regulatory frameworks evolve, technological adoption progresses, and traditional financial institutions respond. The interplay of these factors will shape not only the markets themselves but also the broader landscape of global capital flows and financial inclusion.

Source: https://cointelegraph.com/news/emerging-market-drive-rwa-tokenization-2026?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.