John Mullin, the CEO of Mantra Chain, underscores the notion that the tokenization sector aligns more naturally with institutional investors than with retail investors.

In the latest edition of Cointelegraph's Hashing It Out podcast, host Elisha Owusu Akyaw engages in an insightful conversation with John Mullin, delving deep into the realm of real-world asset (RWA) tokenization. Mullin dissects the buzz surrounding this technology, explores its genuine potential for investors, and navigates through the hurdles encountered by this burgeoning sector.

Mullin sheds light on the implications of tokenization for the adoption of Web3 and its capacity to attract greater institutional investments. He also brings attention to the regulatory landscape in the RWA domain and its implications for Web3 initiatives.

The CEO observes that the current excitement surrounding real-world assets echoes the fervor seen during the heyday of security token offerings (STOs) in the 2018–2019 period.

According to Mullin, the surge in RWA tokenization can be attributed to heightened institutional interest and the emergence of solutions addressing regulatory challenges that previously hindered the STO sector.

Mullin takes a nuanced stance on the necessity of tokenizing everything, highlighting the distinction between tokenization and the conferment of real-world rights. He asserts that for tokens to truly possess transferable value, projects must seamlessly integrate technology and token creation with real-world ownership, corporate governance, and legal standing.

However, Mullin acknowledges the formidable challenge posed by the diverse regulatory frameworks governing different asset classes across jurisdictions. Operating in this space necessitates careful consideration of varying regulatory requirements, rendering it both complex and rewarding.

Moreover, Mullin opines that the trajectory of tokenization suggests a future where virtually everything will be tokenized, marking a significant paradigm shift akin to the transition from Web2 to Web3.

In Mullin's view, the tokenization of real-world assets holds the potential to attract heightened institutional interest, offering them avenues to invest on-chain while mitigating exposure to unfamiliar and volatile assets prevalent in decentralized finance (DeFi).