Tokenization Doubles to $25B — But Fed Warns of DeFi Risks

The Federal Reserve just weighed in on one of crypto’s fastest-growing sectors, tokenization, and the message was measured but clear. Federal Reserve Governor Lisa Cook delivered a landmark speech at the Central Bank of West African States Conference in Dakar, Senegal, on May 8, 2026.

美联储理事 Lisa Cook 表示，美国代币化资产规模过去一年已翻倍至约 250 亿美元，代币化可提升跨境支付、抵押品管理与流动性效率，并通过智能合约实现自动化结算与更灵活的金融交易结构。Cook…

— 吴说区块链 (@wublockchain12) May 8, 2026

She confirmed that tokenized assets in the U.S. have more than doubled in market capitalization over the past year. It is reaching approximately $25 billion. Federal Reserve news today carries real weight for the RWA tokenization sector, and Cook did not hold back on either the opportunity or the risk.

The Opportunity Cook Sees

Cook opened with genuine enthusiasm for the technology. Tokenization, in her framing, is not a threat to traditional finance; it is an upgrade layer sitting on top of it. “I do not see tokenization as replacing traditional market infrastructure,” she said. “The technology presents a tremendous opportunity for innovation in the sector.”

The specific benefits she highlighted are already playing out in institutional markets. Smart contracts enable automated settlement across multi-leg transactions. It reduces the time gap between trading and settlement. Tokenized money market funds allow intraday investment and redemption, improving returns on idle cash. Repo transactions executed on-chain can provide same-day liquidity that overnight processes currently cannot match.

For emerging economies, Cook saw particular promise. Programmable fractional ownership could open capital markets to investors with limited resources. It’s a point she connected directly to her own experience studying economics in Dakar decades earlier. Cross-border repo transactions combined with on-chain foreign exchange could unlock new funding strategies for institutions operating across currency zones.

The Risks She Is Watching

This is where RWA news gets more complex. Cook identified two financial stability considerations she is monitoring closely as tokenization scales. The first is liquidity transformation. Some tokenized assets can be redeemed on demand while their underlying assets remain less liquid. That mismatch introduces run risk. Around-the-clock trading on public blockchains could accelerate a stress event outside normal market hours. This is faster than any traditional system could respond.

The second is interconnectedness. As tokenized assets become collateral, liquidity instruments, and reserve assets simultaneously, shock transmission channels multiply. A problem in one corner of the digital asset ecosystem can ripple into traditional financial markets through multiple pathways at once. Cook also flagged DeFi risks directly; cyberattacks and smart contract vulnerabilities remain persistent threats. As automation increases, she noted, human ability to intervene and correct errors decreases.

What This Means for Investors and Developers

For RWA tokenization investors, a Federal Reserve Governor publicly confirming $25 billion in tokenized U.S. assets is meaningful institutional validation. It signals the Fed is watching this sector seriously, not to shut it down, but to understand how to let it scale safely.

For developers building on tokenization infrastructure, Cook’s speech is both an endorsement and a warning. The Fed’s framework distinguishes clearly between directly issued on-chain assets and tokenized representations of conventional assets. Building within that second category, where legal enforceability and existing regulatory frameworks apply. It is where institutional adoption will accelerate fastest. The Fed is not standing in the way of tokenization. It is learning how to walk alongside it.