Woofun AI reports that Tiger Research is urging financial institutions to prioritize overseas expansion for real-world asset (RWA) tokenization rather than waiting for domestic legislation to mature. The strategic pivot aims to secure a first-mover advantage by leveraging established international markets before local regulatory frameworks catch up.

The global RWA market has already swelled to between $25 billion and $36 billion in the first half of this year, driven by operational efficiencies like automated interest payments and shorter settlement periods. Despite these gains, a widespread regulatory vacuum creates substantial uncertainty, specifically regarding the legal validity for distributed ledger records and inadequate investor protection frameworks. This gap remains the primary barrier preventing traditional financial institutions from entering the tokenization space at scale.

To navigate this landscape, Tiger Research outlines a pre-expansion operational checklist that firms must address before market entry. Key requirements include establishing a local base, securing appropriate licensing, and defining the specific assets to be tokenized alongside target investors.

Furthermore, companies must determine the settlement currency and finalize custody and operational structures to ensure compliance.

Two primary pathways for market entry are identified to bridge the regulatory divide. The first route involves entering regulated jurisdictions such as Hong Kong, Singapore, and the United States, where clear legal frameworks are already in place. Alternatively, firms can leverage on-chain native platforms like Ondo (ONDO) and Plume (PLUME) to accelerate entry and bypass certain traditional regulatory bottlenecks.

Woofun AI data shows that large U.S. financial firms are currently leading the sector by either building proprietary platforms or gaining direct operational experience on networks like Canton (CC), Solana (SOL), and Ethereum (ETH). This competitive landscape highlights that success depends on accumulating practical capabilities rather than waiting for perfect local regulations to emerge.

The core message is that firms must quickly explore available paths to seize the time-sensitive opportunity within the $25–36 billion RWA market. By moving beyond theoretical discussions into practical implementation, institutions can secure a competitive edge before the window of opportunity closes. This marks a critical shift from passive waiting to active global engagement.