Chris Yin, CEO of Plume, a platform focused on tokenized RWAs, expressed strong doubts about current market size estimates, suggesting the true scale of the sector is much smaller than claimed.

“Institutional Capital Hasn’t Arrived Yet”

Speaking during a recent industry event in Dubai, Yin emphasized that mainstream financial players are still observing from the sidelines. According to him, institutional capital tends to move slowly and waits for clear signs of value and adoption before committing.

“These things take time,” he said. “You need to prove utility first, just like it happened with Bitcoin or stablecoins in their early years.” Yin noted that even stablecoins took nearly a decade before being seriously considered by large financial entities.

The $21B Claim Is Overstated

While some reports suggest the tokenized RWA market exceeds $21 billion in value, Yin believes that number is highly exaggerated. In his view, the real figure is closer to $10 billion, with most of it coming from tokenized Treasuries and gold—and only a small portion tied to private credit.

He also pointed out the difficulty in obtaining reliable data, especially in private markets where transparency is lacking and metrics vary across platforms.

Profit, Not Efficiency, Drives Institutional Interest

Yin was clear about what actually motivates large financial institutions: profit, not optimization. He argued that big asset managers don’t care about system efficiency or on-chain transparency—they only step in when there’s a clear opportunity to generate higher returns.

“They’re not here to save money or revolutionize infrastructure,” Yin said. “They’re looking for ways to monetize the technology. That’s the only reason they’re paying attention.”

Despite high-profile moves like BlackRock’s venture into tokenized funds, Yin pointed out that such allocations are minuscule compared to the firm’s total assets under management—further evidence that institutional money isn’t really flowing into on-chain RWAs.

Institutional Infrastructure Is Still Missing

While startups and Web3 innovators are leading the charge, others in the space argue that true scale will require traditional finance to get involved. Since tokenized RWAs often represent yield-bearing financial contracts or regulated securities, the participation of licensed custodians, legal advisors, and compliance frameworks is essential.

“Building an RWA ecosystem without institutional involvement is like launching a stock exchange without clearing houses or regulators,” one expert noted.

Ultimately, the consensus among skeptics like Yin is clear: tokenized real-world assets hold long-term promise, but the road to mainstream adoption will be slow—and filled with challenges that only a mature financial ecosystem can solve.

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