Is TradFi entering crypto through tokenization and RWAs?

Recently I have been thinking about how the relationship between crypto infrastructure and traditional finance is changing.

A few years ago the two worlds felt very separate. Crypto focused on decentralized networks, while traditional finance relied on banks, custodians, and centralized settlement systems.

Now we are starting to see more experiments with tokenized assets and RWAs. Things like tokenized treasuries, tokenized stocks, and institutional trading systems are slowly appearing on blockchain networks. Instead of replacing traditional finance, crypto infrastructure is starting to look like a new settlement layer for existing assets.

From a technical perspective this is interesting. Blockchains allow assets to move and settle globally with fewer intermediaries, which is something traditional systems have struggled with.

You can also see this trend when looking at how some trading platforms are evolving. Platforms like Coinbase or BYDFi are not just hosting crypto markets anymore. They are gradually adding tools and market structures that resemble broader financial infrastructure rather than simple token exchanges.

So the bigger question might not be whether crypto replaces traditional finance.

It might be whether traditional finance is starting to plug into crypto infrastructure.

Curious what people here think.

Is tokenization an expansion of crypto systems, or is it the beginning of TradFi building on top of them?