$10 Trillion RWA Market in Sight as Morgan Stanley Delays Tokenized Stock Trading

Morgan Stanley has pushed back its target for launching tokenized stock trading through its alternative trading system (ATS) to the first quarter of 2027, delaying the initiative from the second half of 2026 as work on the required infrastructure continues.

Amy Oldenburg, the bank’s head of digital asset strategy, confirmed the revised timeline, according to The Block, as reported by Wu Blockchain. She pointed to ongoing technical preparations and relatively limited client demand for tokenized equities, partly because such products are not yet widely available.

The revised schedule indicates that Morgan Stanley is still preparing the infrastructure needed to support trading in blockchain-based representations of stocks. The bank has not publicly identified any additional reasons for the delay beyond the continuing technical work and subdued demand.

An alternative trading system allows securities transactions to take place outside traditional stock exchanges while operating within an established regulatory framework. Morgan Stanley’s proposed service would bring tokenized equities into this trading environment, although the bank has not yet made the service available.

Tokenized Assets Face a Readiness Test

Tokenized stocks represent ownership interests or rights linked to conventional shares through digital tokens recorded on a blockchain. Depending on how a product is structured, tokenization can connect traditional financial instruments with digital infrastructure designed to support trading and settlement.

The legal rights attached to these tokens can vary, however, making the underlying structure important. A token linked to a stock does not necessarily confer the same shareholder rights as directly holding the conventional share.

Morgan Stanley’s revised timeline highlights the gap between the potential of tokenized securities and the practical requirements for bringing them to market. Financial institutions must build reliable technical systems while addressing operational, legal and regulatory considerations before offering such products at scale.

Morgan Stanley Sees Tokenized Real-World Assets Reaching $10 Trillion

Despite the delay, Oldenburg remains optimistic about the longer-term outlook for tokenized real-world assets (RWAs). She expects the market to reach between $3 trillion and $10 trillion by 2030.

Tokenization involves representing ownership rights or economic interests in traditional assets as digital tokens on a blockchain. Potential applications extend across equities, bonds, investment funds, real estate and other financial instruments.

The projected market size remains a forecast rather than an established outcome. The reported remarks did not provide detailed assumptions or a methodology behind the estimate, leaving the range an indication of potential growth rather than a guaranteed valuation.

Infrastructure and Demand Will Shape Adoption

Morgan Stanley’s revised target underscores the difference between expectations for the tokenization market and the pace at which financial institutions can introduce products. Even if adoption accelerates over the coming years, market expansion will depend on more than the underlying technology.

Institutions will need to establish clear ownership rights, dependable trading and settlement mechanisms, and safeguards for investors. Demand will also matter: limited client interest may reflect the fact that tokenized equities have yet to achieve broad availability, making their appeal difficult to assess across a wider investor base.

For now, Morgan Stanley’s delay does not necessarily undermine the longer-term outlook for tokenized assets. It does, however, illustrate the work required to turn blockchain-based financial products into functioning services for investors.

The next test will be whether tokenized securities can offer tangible benefits in accessibility, efficiency and settlement without compromising the legal protections and market infrastructure expected from traditional financial instruments.