Berenzon: Internet-Scale Access, Not Efficiency or Liquidity, is RWA Tokenization's True Value

Dmitriy Berenzon, a partner at venture capital firm Archetype, has issued a provocative statement regarding the widely touted benefits of Real World Asset (RWA) tokenization. In a recent tweet, Berenzon asserted, "I think most of the historical value props around RWAs - efficiency, liquidity, transparency - are mostly bullshit." He emphasized that the "most tangible value prop is internet-scale access.

The tokenization of real-world assets, which converts tangible and intangible assets into digital tokens on a blockchain, is frequently lauded for its potential to revolutionize traditional finance. Proponents often highlight increased liquidity, allowing illiquid assets like real estate or private credit to be more easily traded on secondary markets. Enhanced transparency through immutable blockchain records and faster, more efficient settlement processes are also commonly cited advantages.

However, Berenzon’s perspective pivots sharply from these traditional arguments, instead championing "internet-scale access" as the primary and most impactful benefit. This concept refers to the ability of blockchain technology to democratize investment and ownership, making assets accessible to a global, internet-connected audience. He previously noted that "digiphysicals," such as NFC chips in sneakers, represent a form of RWA adoption driven by a younger, more experimental demographic, suggesting a broader, more accessible market beyond traditional financial structures.

Despite the optimistic outlook from some industry leaders, RWA tokenization faces significant hurdles. Regulatory uncertainty across jurisdictions, complex legal enforceability of digital tokens representing physical assets, and challenges in valuation remain prominent concerns. Berenzon himself has cautioned against a "lemons market," where lower-quality assets might be tokenized due to an inability to secure capital through conventional means.

The RWA market is experiencing substantial growth, with major financial institutions like BlackRock and Franklin Templeton actively exploring and implementing tokenization solutions. BlackRock CEO Larry Fink has even stated that tokenization could "revolutionize investing." Berenzon's candid assessment underscores an evolving understanding within the crypto space of where the true, transformative value of tokenized real-world assets lies.