Global supply chains form the backbone of international trade, connecting producers, distributors, regulators, and consumers in a highly interdependent ecosystem. However, they remain plagued by challenges such as fraud, counterfeit goods, inefficient financing, lack of transparency, and regulatory fragmentation across jurisdictions. Tokenization of real-world assets (RWAs), the process of representing physical goods, logistics documents, or financial claims as cryptographic tokens on a blockchain, has emerged as a transformative solution to these long-standing issues. By enabling digital representations of tangible assets, tokenization allows stakeholders to achieve end-to-end traceability, instant settlement, and programmable compliance through smart contracts. This manuscript examines the role of tokenization in global supply chains by analyzing academic literature, industry applications, and simulation-based models. The study highlights key benefits such as enhanced provenance verification, improved liquidity through fractional ownership, fraud prevention, and streamlined cross-border trade finance. Additionally, it explores case studies including blockchain-based bills of lading, tokenized commodities, and supply chain finance platforms. Simulation results demonstrate significant efficiency gains — settlement times reduced from days to hours, improved ESG compliance reporting, and expanded access to financing for small suppliers. The findings indicate that tokenization is not merely an incremental improvement but a paradigm shift that redefines how value is created and exchanged across supply networks. While challenges such as regulatory uncertainty, interoperability between platforms, and integration with legacy enterprise systems persist, tokenization has the potential to reshape the very architecture of global trade. The convergence of tokenization with artificial intelligence (AI), Internet of Things (IoT), and digital twins further expands its scope, pointing toward the emergence of intelligent, self-regulating, and highly resilient supply chains.
Neeraj Saxena (Tue,) studied this question.