Tokenization of Real-World Assets and Financial Market Transformation: A Review of Literature
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The emergence of tokenization of real-world assets (RWA) has disrupted transformative innovation in global finance, enabling the representation of financial and physical assets on blockchain networks. This study adopts a systematic literature review (SLR) of 25 peer-reviewed research works published between 2015 and 2026, supplemented by authoritative policy and industry reports to explore the implications of RWA tokenization for financial market transformative innovation. Following the guidelines of the Preferred Reporting Items for Systematic Reviews and Meta-Analysis Framework, this study identifies four main research streams: (1) technical and economic drivers, (2) effects of market transformation, (3) regulatory and governance pressures, and (4) risks and adoption dynamics. According to the review, tokenization enhances efficiency, accessibility, and liquidity through continuous trading, smart contracts, and fractional ownership. However, barriers such as technological risks, governance uncertainty, and regulatory fragmentation remain prominent. The study contributes to the academic discourse by providing a comprehensive synthesis of RWA tokenization and emphasizing its implications for developing markets, in particular, financial inclusion and capital formation. The study concludes that although RWA tokenization holds substantial transformative innovation potential, its long-term impact lies in regulatory harmonization, infrastructure development, and empirical validation.