The true-world asset (RWA) tokenization market has grown by 380% in simply three years, reaching $24 billion this month in an indication that conventional finance is discovering advantages from embracing blockchain expertise, in accordance to a report from RedStone, Gauntlet and RWA.xyz.
“Asset tokenization has decisively transitioned from experimental pilots to scaled institutional adoption in 2024-2025,” the Actual-World Property in On-chain Finance Report concluded.
Tokenization refers to representing real-world belongings equivalent to shares and bonds as tokens that may be purchased, offered and traded on blockchains, with the purpose of lowering among the prices and inefficiencies related to legacy infrastructure.
Projections for how large this market could grow to vary wildly, however many appear to contain a quantity a number of that begins with a “t.” McKinsey predicts it to turn out to be a $2 trillion market, whereas BCG estimates $16 trillion by 2030.
The report by RedStone et al cites Commonplace Chartered’s projection of it rising to some $30 trillion by 2034.
“The RWA market’s explosive development is not only spectacular quantity — it is proof that conventional finance is discovering real utility in blockchain infrastructure. From BlackRock’s $2.9 billion BUIDL fund to Apollo’s ACRED private credit tokenization, we’re witnessing the early phases of what may very well be the biggest capital migration in monetary historical past,” the report mentioned.
Whereas stablecoins, tokens pegged to the worth of a conventional monetary asset equivalent to a fiat foreign money, will not be usually considered RWA tokenization, the report argues that real-world belongings may serve the same position.
U.S. Treasury Secretary Scott Bessent has mentioned that stablecoins may bolster U.S. greenback supremacy, a sentiment that would equally apply to tokenized Treasuries.
“These phrases must be interpreted inside the broader U.S.-denominated RWA class — tokenized Treasuries immediately assist finance authorities operations and handle public debt ranges, whereas tokenized company bonds and personal credit score strengthen greenback dominance by increasing USD-denominated funding alternatives in the worldwide digital economic system,” the report mentioned.
