Chung Hei Sing

Chung Hei Sing

I work at the intersection of institutional capital allocation, governance, and financial infrastructure, with a focus on real-world assets and long-term investment decision-making.

The RWA Tokenization Stack

Technology, Governance, and Institutional Constraints

Abstract

Tokenization of real-world assets (RWAs) is frequently presented as a technological stack composed of blockchains, smart contracts, and digital tokens. In practice, however, most tokenization initiatives fail to progress beyond pilots or limited deployments. This paper argues that these failures stem from a mischaracterization of tokenization as primarily a software problem. Drawing on institutional finance and market design perspectives, the paper proposes an alternative conception of the “RWA tokenization stack” as a multi-layered system in which technology is only one component. Legal enforceability, governance authority, fiduciary structures, and regulatory compatibility form higher-order layers that constrain and shape the viability of tokenized markets. By explicitly mapping these layers and their interactions, the paper provides a framework for understanding why many RWA tokenization efforts stall and what conditions are necessary for institutional adoption.

Key Implications

  • Tokenization viability is determined by higher-order institutional layers, not by advances in blockchain or smart-contract technology alone.
  • Weakness or ambiguity in governance, legal enforceability, or fiduciary accountability cannot be offset by technical sophistication at lower layers.
  • Institutional adoption proceeds where tokenization preserves authority, responsibility, and regulatory integration rather than attempting to abstract them away.
  • Treating tokenization as an institutional stack reframes failure as a design problem of governance alignment rather than technological readiness.

Keywords

Real-world assets (RWA); asset tokenization; institutional market design; financial infrastructure; governance frameworks; legal enforceability; fiduciary accountability; regulatory compatibility; smart contracts; distributed ledger technology

Recommended citation: Sing, C. H. (2023). The RWA Tokenization Stack: Technology, Governance, and Institutional Constraints. Working paper.
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