Portfolio management has been based for decades on theories that favor efficient markets and established investments. Today, tokenization of real-world assets (RWA) offers an unprecedented opportunity to expand the universe of financial instruments, introducing transparency, liquidity, and real-time market data. This change could redefine how institutional and private investors structure their portfolios.
Summary
The roots of modern portfolio theory
The idea that markets are always efficient has dominated finance for decades. In the 1960s, Eugene Fama introduced the efficient market theory, according to which asset prices incorporate all available information, making it difficult for investors to achieve returns above the market.
On this premise, the modern portfolio theory was developed, which led to the spread of index funds, passive investment tools that replicate the performance of market indices. In the 1970s, Burton Malkiel highlighted the advantages of indexed investments in his book *A Random Walk Down Wall Street*, and John Bogle launched the first index fund on the S&P 500 in 1975.
This strategy has demonstrated solidity over time, but it is based on a questionable assumption: that investors are always rational. Studies of economia comportamentale, like those by Daniel Kahneman and Amos Tversky, have shown that financial decisions are often influenced by cognitive biases. However, despite these limitations, index funds have remained the default choice for institutional investments due to their storica affidabilità e trasparenza.
The limit of traditional portfolios
Fund managers operate under strict regulations that require prioritizing assets with consolidated historical data and low volatility. This has led to an excessive reliance on instruments such as stocks and government bonds, excluding alternative assets that could offer interesting returns and diversification.
New investment classes are often dismissed because they lack sufficient data to be considered reliable. This creates a paradox: even if an asset has value, without verifiable historical data it cannot be included in institutional portfolios.
The tokenization of RWA as a solution to modern portfolio management
The tokenization of real assets (RWA) on blockchain could solve this problem, offering daily market data, transparency, and liquidity. Through the creation of digital tokens that represent physical assets such as real estate, commodities, or financial rights, a continuous flow of data is generated, allowing investors to analyze the value of these instruments with greater precision.
A practical example is the tokenization of real estate in Thailand, oil concessions in Nigeria, or taxi licenses in New York. These assets, once digitized, could be traded on blockchain markets, providing accessible and verifiable data.
Advantages of tokenization of RWA for portfolio management
1. Greater Diversification
The possibility of investing in global assets reduces the reliance on traditional instruments, creating more balanced and resilient portfolios.
2. Better Transparency and Accessible Data
The blockchain records every transaction in an immutable and verifiable way, ensuring reliable data for investors.
3. Increased Liquidity
Typically illiquid assets, such as immobili o opere d’arte, can be fractioned into tradable tokens, facilitating access for investors of all sizes.
4. Cost Efficiency and Management
Tokenization eliminates intermediaries and reduces transaction costs, making investments more accessible.
An inevitable change
Tokenization is not just a technological innovation, but a necessity to modernize financial markets. The limitations of traditional portfolio theory are increasingly evident, and blockchain offers a concrete solution to overcome current barriers.
If institutional investors adopt these tools, the very concept of investable asset could expand, creating new opportunities and a more efficient allocation of capital.
