Real-world asset (RWA) tokenization is shaking things up in traditional investment markets, opening doors to exciting new opportunities far beyond just finance. While tokenization has been making waves in areas like real estate, gold, and fancy art, the idea of tokenizing tangible luxury goods is now emerging as a real game-changer in the industry.

To get a better grasp on this rising trend and where it’s headed, BeInCrypto sat down with Harley Foote, the CEO and Co-founder of CryptoAutos. CryptoAutos is a leading player in the RWA luxury car market, and Harley shared his insights on what’s fueling this new wave and what the future might hold.

RWA Market Growth and Future Potential

Over the past few years, real-world asset tokenization has really taken center stage, becoming one of the hottest topics buzzing around the crypto industry.

Think of tokenization as using blockchain to create digital twins of real-world items – this lets you break down ownership into smaller pieces. It’s like splitting a pizza, making it possible for more people to own a slice of expensive assets, even if they couldn’t afford the whole thing before.

Real estate, commodities (like raw materials), art, financial products, and precious metals are usually what come to mind when we talk about tokenized assets. But get this – in 2024, the value of all these tokenized assets hit a whopping $186 billion! That’s a 32% jump from the year before, according to a report from the Tokenized Asset Coalition.

“The RWA market has absolutely exploded in the last year – it’s like a perfect storm of macro trends, tech getting better, and investors changing their minds,” Foote explained to BeInCrypto. “Think about it: big institutions are getting more and more interested in blockchain assets, ETFs are becoming, dare we say, totally normal, regulations are getting clearer in important places, and there’s a bigger and bigger need to free up cash in markets that usually aren’t easy to sell in. All of this has really made things speed up.”

Looking ahead, the future of this industry looks incredibly bright. Consulting gurus at German firm Roland Berger predict that the value of tokenized assets could skyrocket to over $10.9 trillion by 2030. They even point to real estate, debt, and investment funds as likely leading the charge in the tokenized asset world.

As RWA tokenization gains momentum, we’re seeing exciting new categories of assets stepping into the spotlight.

The Rise of Tokenized High-End Goods

One trend you can’t ignore is the tokenization of luxury goods – we’re talking supercars, yachts, private jets, and top-tier watches. It’s quickly becoming a transformative force in the world of investments.

“At first, RWAs were all about tokenizing financial things like bonds, real estate, and commodities, which made total sense,” Foote explained. “But as the technology has gotten better and investors have really opened their eyes and gotten a taste for what’s possible, we’re seeing a move towards tangible assets – things you can actually touch – that are naturally rare and in high demand, like luxury cars, art, and collectibles. Supercars, for example, used to be only for the super-rich, but tokenization is changing all that – that’s becoming a thing of the past.”

Back in 2020, a crypto startup called CurioInvest made headlines when they announced they were selling tokens that represented pieces of a limited-edition 2015 Ferrari F12 TDF. They priced these tokens at just $1 each, for a car worth over $1 million! The company also shared their plans to tokenize a collection of 500 luxury cars, envisioning a high-end garage in Stuttgart to house them all.

Fast forward to 2023, and Cloud Yachts came up with a cool new idea for the yachting world: a tokenized experience centered around superyachts.

This NFT company tokenized a massive 94-foot Sunseeker superyacht and aimed to offer luxury yacht trips around Miami for about the same cost as a fancy night out in the city. They sold NFTs for $500 each, which gave buyers a year of access to a cruise around Miami on the Sunseeker 94.

Tokenized Luxury Vehicles

Just recently, CryptoAutos made a big splash by acquiring a $20 million luxury car rental fleet in Dubai. Think drool-worthy limited-edition Lamborghinis, Ferraris, Porsches, and Rolls Royces. Now, customers will have the chance to earn USDT (a stablecoin) through both the sale and rental of these incredible vehicles.

According to Foote, luxury goods, especially supercars, are practically made for tokenization compared to other kinds of assets.

“Unlike very specific financial investments, luxury vehicles have a universal appeal – everyone knows what they are and wants them – plus there’s a global market that’s always active, attracting all sorts of buyers. But what really sets supercars apart from other luxury items like fine art or jewelry is that they can actually make money through rentals or shared ownership. They change from being just a pretty thing sitting there to a dynamic investment that generates revenue,” he explained. “On top of that, supercars often act as a safety net against inflation. Kind of like fine wine or classic watches, supercars tend to do better than traditional investments when the economy takes a downturn.”

Asset tokenization is paving a unique road toward making finance more inclusive by breaking down big price tags into smaller, more manageable pieces.

Democratizing Luxury Asset Ownership

Luxury vehicles are called “luxury” for a reason – usually, only people with millions to spare can realistically afford the luxury of owning one. But tokenization is flipping that script.

“Investing in luxury cars used to be only for an elite group of collectors who had the cash to buy and look after these rare vehicles,” Foote told BeInCrypto. “Before, you needed to shell out for the whole car, but tokenization levels the playing field. These new models can let investors own a piece of really valuable assets even with a small amount of money, trade their holdings quickly in active markets instead of waiting to resell an entire vehicle, and even earn passive income from rental profits.”

Many supercars are made in limited numbers, which makes them especially perfect for tokenization.

“The regular car market is definitely made up of assets that lose value – once they’re mass-produced and sold, they rarely hold onto their price. But we’re talking about supercars here, limited-production hypercars, and classic models,” Foote clarified. “[They] are particularly ideal for tokenization because they’re inherently scarce, exclusive, and have a strong global brand appeal. Limited production runs combined with collector demand naturally push their value up over time.”

The growth of luxury goods in the RWA industry is catching the eye of investors who aren’t even in the crypto world, potentially driving wider acceptance of RWAs in mainstream finance.

“Luxury RWAs act as a bridge connecting traditional investors to the world of blockchain finance,” Foote emphasized. “We see the current movement towards tokenizing luxury assets like supercars, yachts, and other items only speeding up as RWAs become more widely adopted.”

The fact that these assets rely on blockchain tech also builds more confidence among investors who are thinking about using luxury goods to diversify their portfolios.

Blockchain’s Role in Curbing Risks

When you’re dealing with expensive assets, blockchain can really help make trading transparent, easy, and secure.

According to Foote, blockchain’s inherent nature helps get rid of many of the inefficiencies and risks that come with traditional asset ownership by making ownership clear right from the start.

“Every tokenized asset is recorded on the blockchain, which means there’s a clear record of who owns it, and that helps stop fraud. Unlike old-fashioned ways of doing things, investors can trade pieces of supercars, so they don’t have to go through long and drawn-out resale processes. And because blockchain is so fast, you’re not waiting days for banks to process your payment – you can buy your car with just a few clicks,” he explained.

Plus, smart contracts make the whole process even faster and safer.

“Smart contracts make sure legal agreements, profit-sharing plans, and how things are managed are all automatically enforced, which means you don’t need as many middlemen. And because transactions are unchangeable and tamper-proof, investors have more trust in the system,” Foote added.

As luxury asset tokenization grows, some countries are creating rules and regulations to help investors feel even more confident about participating.

Regulatory Frameworks for RWA Tokenization

Around the world, different places have started putting in place regulations for this new market, making it easier for investors to get involved with tokenized RWAs.

“The rules are very different depending on where you are. Dubai, Switzerland, and Singapore have become known as good places for asset tokenization, because they offer clear legal guidelines and protect investors. Meanwhile, the US and EU are still working on their RWA regulations, but we’re seeing encouraging signs, especially in the US with the new leadership,” Foote shared with BeInCrypto.

In November 2024, the Monetary Authority of Singapore (MAS) announced new steps to help tokenized assets become more commercially viable. This included setting up commercial networks designed to make it easier to buy and sell tokenized assets.

MAS also announced plans to build a market infrastructure system and establish standard industry procedures for handling and settling tokenized assets.

Meanwhile, Switzerland is still leading the way in tokenization, thanks to its comprehensive legal structure for digital assets. The country’s 2021 Swiss DLT Bill made it possible to tokenize various assets securely and legally, attracting international players to its market.

Even before Singapore and Switzerland, Dubai was the first place in the world to create clear regulations for tokenized assets. In 2020, they created the Virtual Assets Regulatory Authority (VARA), an official body that oversees virtual assets.

This authority focuses on regulating all sorts of virtual assets, including tokenized products, cryptocurrencies, and security tokens. Setting up VARA brought clarity to the regulations, creating a safe environment for businesses and investors to explore and invest in tokenized assets.

“Dubai is quickly becoming a global hotspot for tokenized luxury assets because of its forward-thinking regulations, strong investor interest, and a booming crypto scene,” Foote said. “We’ve seen several projects like Mantra, Reelly, and of course, us, making big commitments to RWA operations in Dubai already in 2025.”

Still, before jumping into investing in tokenized luxury goods, it’s important to be aware of the potential risks.

Risks and Future Prospects

While some countries have set up clear rules for virtual assets, most still haven’t. The overall regulatory picture for tokenization is still evolving.

Changes in regulations down the road could affect tokenized assets, so investors need to stay informed about the constantly changing legal landscape.

Also, like any investment, tokenized assets can go up and down in value. Even though tokenization can make it easier to buy and sell, it doesn’t get rid of the natural ups and downs of asset markets, especially things like real estate and commodities.

“We’re always upfront about the risks, just like in any market. Things like market swings and general economic conditions can impact demand. Maintenance costs are also a factor, especially with classic cars that need extra care,” Foote told BeInCrypto. “And then there’s the big question mark of regulatory uncertainty. Changes in laws and rules around tokenized assets could affect how investments are structured.”

Even with these challenges, Foote is confident that the demand for tokenized luxury goods is real and isn’t going away anytime soon.

“Investors are increasingly looking for luxury assets that can generate income and also increase in value over time. It’s a truly new area that’s opening up right before our eyes, and we’re grabbing the opportunity with both hands, hitting the gas pedal and going full speed ahead,” he concluded.

While there are still hurdles to overcome, the strong appeal of tokenized luxury goods suggests that this is definitely a growing market to keep a close watch on.