EMURGO COO Nikhil Joshi Urges Strategic Approach to RWA Tokenization

Nikhil Joshi, Chief Operating Officer of EMURGO, has voiced concerns over the indiscriminate tokenization of real-world assets (RWAs), warning that not all assets benefit from being placed on the blockchain. Speaking in response to a post on X about the "Emerging RWA Opportunities in 2025" panel, the Cardano executive emphasized the need for a use-case-driven strategy rather than a speculative or trend-driven approach.

Joshi remains optimistic about tokenized private credit, which he describes as a high-potential, short-term opportunity. Unlike traditional private credit markets that are often illiquid and opaque, blockchain-based tokenization can improve transparency, tradability, and operational efficiency. He stated, “Private credit is the big immediate opportunity,” highlighting its transformative potential within the digital asset ecosystem.

However, Joshi cautioned against "tokenitis" — the habit of tokenizing assets simply because it’s technologically feasible. He stressed that tokenization should serve real utility and address specific inefficiencies, rather than be driven by hype. Not every asset class gains from being tokenized, and failing to recognize this could hinder broader blockchain adoption.

Joshi also noted that while tokenization may not always increase liquidity, it can expand collateral options in decentralized finance (DeFi), supporting lending, staking, and yield strategies. As the RWA tokenization trend gains momentum, it is expected to bridge the gap between traditional finance and blockchain, fostering regulatory compliance and broader investor access. Cardano and Ripple Labs are among the blockchain networks leading this initiative, with potential to attract both crypto-native and mainstream users.

By promoting thoughtful tokenization practices, Joshi envisions a more sustainable path forward for integrating real-world assets into the digital economy. His remarks reflect a growing consensus that success in RWA tokenization lies in solving real problems, not chasing hype.