Introduction
Tokenization of real-world assets (RWAs) is emerging as a transformative force across multiple industries, and supply chain and manufacturing stand at the forefront of this shift. By converting physical assets—such as inventory, equipment, raw materials, and invoices—into digital tokens on blockchain networks, businesses can unlock new levels of efficiency, transparency, and financial flexibility. This innovation turns traditionally illiquid or static items into programmable, tradeable digital assets that can be monitored, financed, and transacted in real time.
As enterprises seek to modernize their operations and improve capital utilization, tokenization offers compelling solutions: from automating inventory audits and accelerating supplier payments, to enabling fractional ownership of high-value equipment. This report explores the practical use cases of RWA tokenization in manufacturing and logistics, the growing investor and corporate interest in the space, performance metrics for adoption, the underlying blockchain and regulatory infrastructure, and the distinct paths enterprises and SMEs are taking toward implementation.
Key Use Cases. Tokenized RWAs enable end-to-end tracking and financing of supply chain assets. For example, inventory and warehouse stock can be represented on-chain to improve traceability, automate counting, and speed audits. Smart contracts can trigger alerts or actions when perishable goods reach unideal conditions, reducing recall losses. Raw materials and commodities (metals, energy, grains, etc.) can be tokenized to provide real-time provenance and price discovery. Blockchain tokens link each batch of material to immutable data (origin, quality certificates, emissions) that flows through the supply chain. Finished goods and equipment – including machinery, vehicles or factory equipment – can be tokenized to unlock financing. By fractionalizing high-value industrial assets (e.g. manufacturing machines, freight containers), companies can raise capital from global investors instead of bank loans.
Inventory & Goods-in-Progress: Tokenizing on-hand inventory or in-transit goods enables precise stock visibility. Each item or lot has an on-chain record, reducing discrepancies and preventing overstock/stockouts. This level of traceability also helps detect counterfeits or unsafe conditions early, minimizing waste and recall costs.
Invoices & Receivables: Accounts receivable can be converted to tokens (“invoice factoring on-chain”) to speed payment and improve cash flow. Tokenized invoices can be sold to financiers at a discount through a shared ledger, enabling suppliers (often SMEs) to get paid in minutes instead of waiting 30–90 days. For instance, Amazon demonstrated a pilot where marketplace seller invoices were tokenized and settled in stablecoins, allowing small vendors to receive funds immediately.
Supply-Chain Financing Instruments: Letters of credit, trade-credit notes and financing obligations can be issued as digital tokens, automating compliance and settlement. Smart contracts enforce payment terms in real time, reducing disputes and cutting paperwork. This deep-tier financing is especially valuable for smaller suppliers who lack traditional credit, letting them access capital anchored to tokenized purchase orders or receivables.
Equipment & Machinery: Industrial assets (e.g. heavy machinery, trucks, robotics) can be tokenized to fractionalize ownership or use them as collateral. A new “machine tokenization” model lets investors buy shares of a factory robot or solar turbine through a blockchain platform. This democratizes investment and helps manufacturers offload capital expenditures. Companies like ELOOP (Austria) are already issuing tokens backed by fleets of cars and turbines.
Commodities and Raw Materials: Gold, oil, rare minerals and agricultural inputs are commonly tokenized to improve liquidity. On-chain tokens allow 24/7 trading of fractional commodity units, with embedded provenance. For example, platforms like TradeWind offer digital tokens for precious metals, letting investors buy micro-shares of gold and silver around the clock. These tokens also serve as collateral in DeFi lending, boosting capital efficiency for producers.
Sustainability and Emissions Tracking: Manufacturers are using tokens to measure and certify environmental impact. Blockchain can attach emissions or sustainability metrics to product tokens, tracing Scope 1–3 emissions end-to-end. Digital product passports (an emerging EU concept) will similarly use token records to carry compliance data. In tokenized chains, carbon credits can be issued and retired transparently, incentivizing greener operations.
Each use case leverages blockchain’s immutability and programmability. Tokens ensure an unforgeable ownership record (e.g. via RFID/barcode attestations) and enable automated workflows (smart contracts) for compliance, escrow, or quality control. Overall, RWA tokenization turns physical supply chain assets into tradeable digital instruments, unlocking new visibility, financing and efficiency.
Investment and Funding Trends
Real-world asset tokenization is attracting significant venture and corporate backing worldwide. Investors see it as a way to unlock trillions in traditionally illiquid capital. In early 2025, for example, Plume Network (a dedicated blockchain for RWA finance) raised a $20 million Series A from leading funds (Brevan Howard Digital, Lightspeed Faction, Galaxy Ventures, etc.), underscoring institutional conviction. Similarly, Brickken (a Barcelona-based RWA platform) closed a $2.5 million seed round in January 2025, bringing its post-money valuation to $22.5 million. Brickken’s investors span the U.S., Europe and Asia, and the company reports having tokenized over $250 million in assets (energy, real estate, private equity) across 14 countries. These examples illustrate a broader surge of funding: venture capitalists and digital-asset funds are pouring money into tokenization startups in the U.S., EU and Asia, betting on platforms that can onboard legacy assets.
Corporate initiatives are also accelerating RWA adoption. Tech giants and financial incumbents are piloting or investing in tokenization projects. In supply chain, Maersk/IBM’s TradeLens blockchain (for container tracking) and Walmart’s food-traceability pilot are well-known, but now firms are extending beyond track-and-trace to asset-backed finance. Notably, Amazon collaborated on a Singapore blockchain demo to tokenize seller invoices and pay merchants in digital SGD stablecoins, demonstrating real-world utility for fast supplier payment. JPMorgan Chase has built internal tokenization systems (e.g. JPM Coin for wholesale payments, and JPMorgan Onyx for securities settlement), hinting at future RWA pilots. Major asset managers like BlackRock and Franklin Templeton have launched tokenized funds (e.g. blockchain money market funds) and expanded their products across multiple chains.
Regulators and multilateral organizations are likewise mobilizing resources. The EU’s MiCA regulation (2024) and digital euro initiatives create frameworks affecting tokenized assets. Singapore’s Project Guardian (MAS) and Dubai’s tokenization sandbox (DFSA) invite projects to experiment under guidance. On May 9, 2025, a Crypto.com Research report noted global projects like the Dubai Land Department pilot for tokenized real estate and the planned Dubai Financial Services Authority sandbox for blockchain investments. These government-backed efforts provide funding or policy support that accelerates enterprise and SME adoption.
In the United States, regulatory clarity is emerging. The SEC has hosted roundtables on tokenization (May 2025) and signaled openness to new guidance on securities and custody rules. U.S. venture funding tends to focus on the intersection of DeFi and real assets (e.g. stablecoins backed by Treasury bills or gold), reflecting Silicon Valley interest. Meanwhile, U.S. supply chain companies are exploring consortia and private DLT networks under frameworks like GS1 standards.
Overall, the investment landscape is global: venture capital, corporate R&D budgets and government programs are all rapidly increasing. Observers estimate the RWA market could reach tens of trillions in the next decade (see Outlook below). For now, notable funded projects include tokenized funds (Ondo, DXUSD), industrial ledger networks, and platforms for token issuance (Tokeny, Securitize). Key points: Tokenization startups are raising capital across Europe, Asia and the U.S., driven by major investors (e.g. Brevan Howard, Galaxy, Lightspeed). Corporations are partnering with fintechs to pilot RWA products (Amazon tokenized invoices, DeFi funds, etc.). Government and regulatory funding/sandboxes (Singapore, Dubai, EU) further support industry R&D.
ROI Metrics and Key Performance Indicators
Tokenizing RWAs can yield concrete efficiency and financial gains. Capital efficiency improves as assets become liquid collateral. Companies can fractionalize inventory or equipment to a broader investor base, reducing the amount of idle capital tied up. PwC notes that each new investment in tokenization infrastructure can unlock “capital efficiency, cost savings, access to new market segments, [and] transparency”. In practice, tokenization allows fast on-chain asset transfers (e.g. cross-border payments) that cut settlement time from days to seconds. This reduces capital needs for working capital and currency hedging.
Liquidity and access are enhanced. Traditionally illiquid corporate assets (real estate, machinery, long-tail inventory) become tradable tokens. Firms can sell fractions or use them as collateral in DeFi lending, unlocking new funding without debt. For example, tokenized warehouse stock or supply contracts can be pledged to borrow funds instantly, whereas previously companies had to go through lengthy bank processes. As PwC observes, “making traditionally illiquid assets more liquid” can create new revenue by fractionalizing and broadening investor pools.
Transaction speed and transparency are major metrics. On-chain settlements occur in minutes or less, versus multi-day workflows. Smart contracts automate enforcement (e.g. auto-payment upon delivery), reducing manual intervention. This real-time processing is a KPI often cited: blockchain can cut trade finance cycle times dramatically. Operationally, businesses report far fewer reconciliation errors when token systems are used. Public chain fees remain higher, but enterprise blockchains or Layer-2 solutions mitigate cost, so transaction fees and delays fall.e
Cost savings also accrue by removing intermediaries. Hedera’s analysis finds that eliminating paper and middlemen can “significantly lower logistics costs”. For example, blockchain reduces the need for costly audits of invoices or inventory — one scan on-chain replaces multiple manual records. EY notes that tokenized inventory systems “supplement the process of inventory management” to reduce double-counts and human errors. In invoicing, cutting out factoring agents or having instant stablecoin settlement shrinks finance fees.
Other KPIs include cash-flow improvement (days payable outstanding drops as invoices turn into cash quickly), operational throughput (more transactions per day), and risk reduction (fewer disputes and fraud losses). SEC Commissioner Mark Uyeda pointed out that tokenization can reduce “delays associated with intermediation” and “decrease transactional costs”. In summary, companies measure success by faster settlements, better asset utilization, and lower overhead. Early adopters often report ROI in terms of percentage cost reduction (some claim 30–60% cut in reconciliation costs) and return on deployed capital (e.g. higher yields on tokenized assets).
Implementation: Protocols, Smart Contracts, and Regulatory Considerations
Blockchain platforms. The choice of ledger depends on use case. Public permissionless chains like Ethereum dominate token issuance today – Crypto.com reports Ethereum accounts for ~54% of tokenized RWA market cap. Ethereum’s rich smart-contract ecosystem and investor network make it appealing for interoperability. Other Layer-1s (zkSync Era, Solana, Avalanche, Polygon) are also gaining share; some RWA projects (e.g. BlackRock’s funds) have launched on multiple chains for global reach. Emerging “RWA-specific” Layer-1s (e.g. Plume Network) are built with compliance features in min.
For enterprises, permissioned and hybrid blockchains are popular. Platforms like Hyperledger Fabric, R3 Corda or JP Morgan’s Quorum provide privacy controls and known participants. Fabric’s modular architecture lets companies segregate data and define access policies, which is crucial for sensitive supply chain data or regulated assets. Hybrid models can combine private channels (for confidential data) with public anchors. Some projects even use a multi-chain approach, e.g. private DLTs for internal processes and Ethereum for external funding.
Smart contracts and token standards. Tokenization of RWAs often uses customized standards. Fungible assets may use ERC-20 or stablecoin-like tokens, while unique assets (items, equipment) use ERC-721/1155 or security-token standards (ERC-1400, ERC-3643) that embed compliance rules. For example, security-token frameworks (Polymath’s ERC-1400 or Tokeny’s ERC-3643) ensure regulatory clauses (transfer restrictions, KYC) are coded into each token. Smart contracts can govern everything from token issuance to dividend payouts. They also enforce supply-chain agreements: a contract could release payment tokens to a supplier automatically when a shipment token arrives at the destination scan.
Interoperability protocols (Chainlink CCIP, LayerZero, Axelar) are increasingly used to move tokens between chains. Many funds and platforms now deploy on multiple networks to reach investors and liquidity pools. Oracles (e.g. Chainlink) supply off-chain data (price feeds, IoT sensors, compliance status) to token contracts.
Regulatory compliance. Tokenized RWAs face rules on both the asset and the digital side. In the U.S., many tokens qualify as securities under the Howey Test, so platforms must register with the SEC or qualify for exemptions. Issuers often use regulated security-token offerings (STOs) with strict KYC/AML vetting. AML/KYC requirements apply at issuance and secondary trading; identity checks and transaction monitoring are mandatory. Data privacy laws (GDPR in Europe) demand careful handling of investor data when minting tokens. Thus, many corporate tokenization platforms build in compliance features or partner with regulated entities (custodians, broker-dealers) to satisfy laws.
Globally, regulations vary. Europe’s ESMA/MiCA guidelines encourage tokenized funds and limit stablecoin design; Asian regulators (Singapore MAS, HKMA) have sandboxes for digital asset projects. For supply-chain goods, customs and trade laws (e.g. electronic Bill of Lading rules) are evolving to accept blockchain records. Companies must also address real-world attestation: physical assets need proof of existence before tokenization (audited audits, IoT tagging, etc.). Industry associations (GS1, ISO) are defining standards for digital identity and tracing.
In summary, implementation blends blockchain technology with enterprise systems. Common approaches include:
Protocol Selection: Public EVM chains (Ethereum, BNB Chain) for liquidity; permissioned DLTs (Hyperledger, Corda) for privacy-sensitive use cases. Layer-2 networks and sidechains (Polygon, zkSync) for scaling. Emerging RWA-tailored platforms (Polymesh, Plume) for compliance features.
Smart Contract Frameworks: Solidity/EVM contracts or other chain-specific languages (R3’s Kotlin, Hyperledger chaincode). Security-token libraries (OpenZeppelin, Tokensoft) accelerate compliant token creation. Oracles and middleware (Chainlink, enterprise gateways) bridge on-chain assets with real-world events.
Regulatory Safeguards: Integration of KYC/AML modules; issuance through regulated entities (broker-dealers, STO platforms); adherence to securities law (registering tokens as investment contracts if required). Privacy-preserving features (permissioned channels, zero-knowledge proofs) to protect confidential data. Ongoing dialogue with regulators (e.g. SEC forums) to shape workable rules.
Enterprise vs SME Adoption
Large companies and small-to-medium enterprises (SMEs) are engaging with RWA tokenization at different paces. Enterprises have the scale to invest in pilots and enterprise blockchains. Global manufacturers, retailers and banks often participate in consortia or build private DLT networks (e.g. Maersk’s TradeLens, Walmart’s Food Trust) that could expand to RWA use cases. They have strong incentives to improve supply-chain resilience and finance: a Fortune 500 might tokenize fleets, factories or entire supply contracts to optimize capital usage. However, big firms also face hurdles: integration with legacy IT, corporate governance, and stringent regulatory oversight can slow rollout. Pilot projects (like IBM’s Food Trust, or trade-finance platforms from banks) show interest, but full-scale adoption in large enterprises can take years.
In contrast, SMEs in the supply chain often stand to benefit significantly from tokenization but may lack resources. Tokenized receivables and payables offer them faster cash flow and credit access. For example, by selling tokenized invoices on a blockchain, a small supplier can essentially get same-day payment (via stablecoins) instead of waiting weeks. In general, SMEs use tokenization indirectly – usually through platforms or their larger partners. A Tier 2 parts manufacturer might join a blockchain-based purchasing ecosystem run by an OEM. Regulatory and technical complexity is a bigger obstacle for SMEs; many do not have in-house blockchain experts. As a result, fintech providers target SMEs with turnkey tokenization-as-a-service solutions (often cloud-based) that abstract away the technology.
Adoption trends: Large firms are starting with niche projects (e.g. tokenized trade finance by big banks, enterprise blockchain dashboards) and will gradually expand scope. They often lead the way in setting standards and convincing regulators. SMEs adopt more opportunistically, especially when driven by customer (enterprise) demand or when they see a clear ROI (e.g. cheaper financing). Both groups, however, show increasing interest. In one survey, blockchain adoption was highest in manufacturing and healthcare, with projects focusing on tracking and digitizing assets. For SMEs, the promise of a wider investor base and quicker payments is a strong pull.
The net effect is a bipolar landscape: the largest multinationals gradually blockchain-enable their supply chains, while startup fintechs and consortiums devise lightweight tokenization tools to onboard SMEs. Over time, we expect tokenized finance solutions to become standard offerings on enterprise ERPs and banking platforms, helping small suppliers participate more easily.
Outlook (Next 5–10 Years)
Tokenizing real-world supply chain and manufacturing assets is poised for explosive growth. Estimates vary, but even conservative forecasts are staggering. A Security Token Market report (Feb 2025) projects $30 trillion in assets tokenized by 2030. Boston Consulting Group similarly envisions $16.1 trillion of tokenized assets by 2030 (around 10% of global GDP). Even nearer-term, a 2025 industry analysis expects tokenized RWA (excluding stablecoins) to reach a $50 billion market cap by year-end, driven by “regulatory clarity, institutional adoption and DeFi integration.”.
Looking ahead, we anticipate several trends:
Widespread Adoption: Tokenization will move beyond pilots into mainstream use. Large funds and asset managers will routinely issue tokenized versions of traditional products (money-market funds, corporate bonds, inventory-backed loans). Supply chains will embed tokens at each handoff, especially in industries like pharmaceuticals, aerospace and electronics where traceability is critical. Small suppliers will increasingly accept tokenized payments and possibly pay in tokenized currencies.
Interoperability and Standards: Advances in blockchain interoperability (Layer-0/2 solutions) will allow RWA tokens to move freely between networks, increasing liquidity. Industry standards (ISO, GS1) and common token frameworks will mature, making it easier for different systems to share data. APIs will link enterprise resource planning (ERP) systems to blockchain platforms, automating asset token creation.
Regulatory Evolution: Governments will refine digital-asset regulations. In the U.S., the SEC and CFTC may issue explicit rules or safe-harbors for tokenized securities and commodities. Central banks may introduce digital currencies or wholesale DLT systems that work seamlessly with tokenized assets. Europe’s digital product passport mandates (2024 onward) and China’s e-CNY pilot could further legitimize digital ledgers for trade. Regulated asset token offerings (e.g. under new securities frameworks) will become routine.
Technological Integration: IoT, AI and blockchain will converge. For example, smart sensors on goods might auto-mint or burn tokens based on condition or location. AI could analyze on-chain supply chain data to predict bottlenecks or suggest financing optimizations. Decentralized identity solutions will streamline KYC for asset token holders.
Marketplaces and Liquidity: Dedicated secondary markets for real-world tokens will arise. Token exchanges (or tokenized ETFs) will list shares of tokenized real estate or commodities, allowing 24/7 trading. This new liquidity will be a strong draw for institutional investors and even retail through regulated platforms.
Of course, challenges remain: achieving global interoperability, ensuring cybersecurity, and managing regulatory risk are ongoing work. However, the consensus is optimistic. As crypto advocates note, “only 0.02% of the traditional asset market is tokenized today,” leaving vast untapped potential. The coming decade will likely see continuous breakthroughs — from multi-chain asset networks to novel tokenized financing models — fundamentally reshaping how manufacturers and suppliers manage and fund their assets.
Summary: In sum, RWA tokenization is transitioning from hype to high-impact pilot projects. Its use in supply chain and manufacturing promises greater visibility, faster funding, and new business models. Investors are pouring money into RWA platforms globally, and regulators are slowly crafting frameworks. The coming 5–10 years should witness rapid scale-up: trillions of dollars of industrial assets will circulate on blockchains, unlocking efficiency and innovation across the global supply chain.
Sources: Authoritative industry analyses and case studies are cited throughout to support these insights (EY, PwC, Deloitte, Hedera, Crypto.com Research, SEC panels, etc. – see endnotes. These references provide evidence of real-world implementations, market data, regulatory updates, and corporate initiatives. Each section above is grounded in documented examples and expert reports to ensure a comprehensive, factual overview.