Discover how real-world asset tokenization is reshaping finance in 2025! Read Token City’s insights from Juan Pedro Parás Varela to see where the next big opportunities lie.
The tokenization of Real-World Assets (RWA) is gaining momentum globally, driven by blockchain’s ability to unlock new levels of efficiency, transparency, and accessibility.
However, as with any emerging market, the road ahead is paved with both opportunities and challenges. We had the opportunity to speak with Juan Pedro Parás Varela, Business Development Manager at Token City, a leader in the tokenization of financial instruments.
In this conversation, Varela shared his insights into the regulatory landscape, market growth, and how blockchain technology is transforming asset management.
🎯 The Key Challenges in RWA Tokenization
For Token City, the primary challenge in tokenizing RWAs remains regulation. While Spain is a leader in regulated security token issuance, the global regulatory landscape remains fragmented. Countries have varied interpretations of how tokenized assets should be handled, creating complexity for cross-border tokenization.
“Every security emission has to be regulated. In Spain, we have a clear framework, but that’s not the case everywhere,” says Varela. “Market liquidity and structuring challenges also pose difficulties, especially when working with different industries.”
To navigate these obstacles, Token City leverages its network of regulatory partners and collaborates with local experts in each jurisdiction. This strategy ensures seamless integration for clients and builds trust across various markets.
The Impact of Regulatory Changes on RWA Tokenization
As regulations continue to evolve, Token City is optimistic about the future of RWA tokenization, especially in markets like real estate, money market funds, and infrastructure. According to Varela, regulatory clarity is crucial in expanding adoption:
“In the next two to three years, regulatory changes will play a pivotal role. Markets like Asia, LatAm, and the UAE are growing rapidly, and regulators are getting more familiar with tokenization, which is paving the way for broader adoption.”
Varela specifically highlights real estate as a key asset class for tokenization, noting that blockchain technology will continue to democratize access and attract retail investors. He also mentions that the U.S. market remains tricky due to regulatory challenges but remains a significant player in the space.
Blockchain’s Role in RWA Tokenization
For Token City, blockchain is more than just a buzzword – it’s a core technology driving operational efficiency and liquidity in previously illiquid markets. Tokenization offers solutions to long-standing financial barriers, particularly in cross-border payments, crowdfunding, and debt tokenization.
“Tokenization has allowed us to inject liquidity into sectors that lacked it before. With blockchain, we can automate admin processes via smart contracts, making everything traceable and much harder to launder,” explains Varela.
The automation of debt tokenization and the real estate crowdfunding process are just a few examples of how Token City leverages blockchain to lower entry barriers for investors, increase transparency, and improve operational efficiency.
Building Trust with Investors
Building trust in tokenized assets is crucial for gaining investor participation. For Token City, establishing credibility starts with a solid regulatory foundation and building a reliable brand:
“Investors trust companies that are backed by strong regulation. We focus on market validity and building our brand with a focus on regulatory compliance,” says Varela.
Read more: Asset Tokenization Is Going Mainstream in 2026
Token City has placed a strong emphasis on regulatory backing, and their commitment to providing transparency and market trust sets them apart in the competitive tokenization landscape.
The Growing Trend of RWA Tokenization
In 2025, RWA tokenization has evolved from a niche topic to a trending subject at major industry events. Varela sees growing interest and recognition:
“Over the past year, RWA tokenization has started to get more attention at industry events. We see recognition from both traditional finance institutions and the Web3 space – it’s definitely growing.”
As blockchain technology matures, tokenization will play an increasingly important role in the financial ecosystem, allowing a more democratized investment model and making financial markets more accessible for everyone.
Token City’s Infrastructure: Adaptable and Scalable
Token City offers a white-label tokenization platform, providing SaaS solutions and customized infrastructure for clients. Varela notes that Polygon and EVM-based chains are primarily used for their platform, though flexibility in blockchain selection is crucial for different clients.
Token City’s approach includes a combination of in-house development and outsourcing when necessary, allowing them to remain adaptable to changing needs and market demands.
What’s Next for RWA Tokenization?
The potential for RWA tokenization is vast, and according to Varela, we’re just getting started. With increasing regulatory clarity, evolving infrastructure, and the growing recognition of blockchain’s benefits, RWA tokenization is poised to reshape capital markets and democratize financial access across the globe.
“We’ve only just begun. The RWA sector has the potential to completely transform how assets are managed and traded.”
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