Authentic title: “IOSG Weekly Transient|Ethereum RWA Explosion: Regulatory Changes and New Growth Engine #278”
Authentic Writer: Sam, IOSG Ventures
TL; TL;DR:
Take the stablecoin invoice as an introduction, introduce the current public consideration and dialogue on RWA, and then begin speaking concerning the RWA knowledge evaluation on Ethereum (zksync can be utilized as a spotlight) What impression will the emergence of Etherealize have on Ethereum Ethereum’s stablecoin issuance and DeFi have at all times had a robust moat, mixed with the brand new coverage of the US, can conventional finance and DeFi be organically linked by way of RWA, As probably the most trusted and decentralized blockchain, we proceed to be bullish on Ethereum’s level the place the
invoice catalyzes and the market consideration
In opposition to the backdrop of a quickly evolving conventional monetary and regulatory surroundings, the current passage of the GENIUS Act has reignited curiosity in RWAs. Along with stablecoins and main legislative developments, the RWA area has quietly reached a variety of vital milestones: continued robust progress and a collection of notable breakthroughs – similar to Kraken’s launch of tokenized shares and ETFs, Robinhood’s proposal to the U.S. Securities and Change Fee (SEC) to present token belongings the identical standing as conventional belongings, and Centrifuge’s $400 million decentralized JTRSY fund on Solana.
At a time when market consideration is at an all-time excessive and the broader adoption of conventional finance is simply across the nook, it is vital to take a deep have a look at the present RWA panorama – and particularly the standing of main platforms like Ethereum. Ethereum-based RWA has proven spectacular month-on-month progress, usually sustaining double-digit highs; Growth in 2025 will speed up even quicker than in 2024, when it was a single-digit month. One other key issue driving this momentum is Etherealize as a catalyst for regulatory improvement, and the Ethereum Basis’s strategic concentrate on RWA. At this essential juncture, this text will take a deep dive into the evolution of RWA on Ethereum and its Layer-2 community.
RWA Ecosystem Map, IOSG
Knowledge Evaluation: A Panoramic View of Ethereum RWA Growth
The information clearly reveals that Ethereum’s RWA worth has entered a clear progress cycle. Trying on the whole worth of Ethereum’s non-stablecoin RWA, the long-term trajectory is putting – it has remained within the $1 billion to $2 billion vary for a few years till it enters a part of speedy progress in April 2024. This progress momentum continues to speed up by way of 2025. The core driver is BlackRock’s BUIDL fund, which is now price $2.7 billion. As proven by the orange pattern line, BUIDL itself has proven parabolic progress since March 2025, driving the general enlargement of the Ethereum RWA ecosystem.
RWA.xyz, IOSG
by asset class (excluding stablecoins), the market capitalization of actual world belongings (RWAs) on Ethereum is extremely concentrated in two important classes: Treasury initiatives (75.9%) and commodities (primarily gold, 20.3%), with different classes accounting for a small quantity. In distinction, non-public credit score accounts for the very best proportion of RWA market capitalization within the total crypto market (57.4%), adopted by Treasury initiatives (30.9%).
RWA.xyz, IOSG
RWA.xyz, IOSG
Additional specializing in the highest belongings of Ethereum RWA, the pie chart clearly reveals the dominance of BUIDL. Trying again a yr in the past, the comparability reveals that BUIDL was comparable in scale to PAXG, XAUT and different merchandise, and now it has fashioned a important surpass. Though the composition of the highest 10 initiatives is mainly secure, the expansion charge of treasury bond merchandise is considerably forward of that of gold merchandise, and the market share continues to develop.
RWA.xyz, IOSG
RWA.xyz, IOSG
From the attitude of protocols, the present leaders are primarily stablecoin issuers – the highest 4 protocols are Tether, Circle, MakerDAO (Dai stablecoin system) and Ethena. It’s price noting that the full worth of the securitization protocol Securitize has considerably surpassed some stablecoin initiatives similar to FDUSD and USDC, and has jumped to the highest. Different securities protocols within the prime 10 embrace Ondo and Superstate.
RWA.xyz, IOSG
focuses on month-to-date knowledge for 2024, with a wave of progress beginning in April 2024 and attaining a staggering 26.6% enhance within the month – contributing a quarter of the full incremental Ethereum RWA in a single month. This momentum continued into the subsequent three months, and though it slowed barely between August and December 2024, the community nonetheless maintained a rise of about $200 million monthly (about 5% QoQ and over 60% annualized).
Growth exploded once more in January 2025, surging 33.2% month-on-month. After a temporary correction in February, Ethereum maintained double-digit progress for 4 consecutive months, with month-on-month progress exceeding the 20% mark in April and Might.
RWA.xyz, IOSG
BUIDL
With BUIDL’s speedy rise to turn into the biggest undertaking within the Ethereum RWA ecosystem by market capitalization, a detailed understanding of its progress path is essential. The month-on-month progress chart reveals that the indicator remained comparatively secure by way of March 2025 and then confirmed an explosive soar in March 2025. Nevertheless, the most recent Might knowledge reveals that the ultra-fast progress pattern has slowed barely, however there may be nonetheless a rise of $210 million, a rise of 8.38% month-on-month. Developments within the coming months are a key window to look at – we have to monitor whether or not progress continues to sluggish or continues to develop explosively.
RWA.xyz, IOSG
BUIDL’s explosive progress stems from a number of elements. The expansion was largely pushed by institutional demand, and the competitiveness of the merchandise was a key driver of success: 24/7 operations, quicker settlement than conventional finance, and excessive yields inside a compliance framework. Notably, DeFi integrations are realizing synergies and unlocking extra utility, similar to Ethena Labs’ USDtb product, which has 90% of its reserves backed by BUIDL. On the similar time, the popularity of BUIDL as a high-quality collateral continues to develop, and the launch of sBUIDL by Securitize additional unlocks the DeFi integration scene.
BUIDL’s asset distribution is extremely concentrated: about 93% is targeting the Ethereum mainnet, which is troublesome for different ecosystems to realize. On the similar time, as AUM continues to develop, BUIDL’s month-to-month dividend has reached a new excessive, reaching $4.17 million in March 2025 and hovering to $7.9 million in Might.
BUIDL distribution, screenshot from RWA.xyz
stablecoins
In view of the structural impression that the GENIUS Act could have on the regulatory framework for stablecoins, it is very important systematically study the event trajectory of the Ethereum stablecoin market. Since 2024, the sector’s whole market capitalization has continued to indicate a stable upward pattern, sustaining a resilient month-to-month progress tempo, albeit at a barely slower tempo than different RWA segments.
RWA.xyz, nearly all of
IOSG
small initiatives (< $500 million) skilled a sustained contraction in early 2024. Nevertheless, in direction of the top of 2024, the market worth of most initiatives continues to rise, and the market worth of GHO, M, USDO continues to develop. On the similar time, a variety of new stablecoin initiatives have emerged throughout the 50 M market capitalization, the Ethereum stablecoin ecosystem initiatives are extra various, and the small-capitalization initiatives have continued to prosper since 2025.
Medium-sized initiatives ($5-$5 billion) will solely have FDUSD and FRAX in 2024; BUSD plummeted from $1 billion in January 2024 to lower than $500 million in March 2024 as a result of termination of the providing. Nevertheless, in 2025, USD 0 and PYUSD will each break by way of the $500 million threshold, and mid-sized stablecoins will probably be extra diversified.
The highest stablecoins (> $5 billion) proceed to be dominated by USDT and USDC: USDT stabilized at $40 billion for many of 2024, jumped to $70 billion in early December, and then progressively stabilized till the current decline in market capitalization; USDC has steadily grown from $22 billion in January 2024 to $38 billion in Might 2025. In the beginning of 2025, USDS and USDe each exceeded $5 billion, however USDT and USDC are nonetheless far forward by way of market share.
RWA.xyz, IOSG
USDT and USDC occupy an absolute dominant place, which straight impacts the whole stablecoin ecosystem.
The
progress in November 2024 is especially noteworthy: USDT surged 30.16% month-on-month and USDC grew by 16.31%. This spike was adopted by months of progress, with USDC rising extra solidly in subsequent months, all of which grew by greater than 5% monthly. In accordance with the issuer, Tether attributed this to “the inflow of collateral belongings on exchanges and institutional desks in response to the anticipated surge in buying and selling volumes”; Circle highlighted that “USDC circulation elevated by 78% year-on-year… Along with consumer demand, additionally it is as a result of rebuilding of market confidence and the advance of the usual system pushed by the regulatory guidelines of rising stablecoins.”
Nevertheless, there was a clear shift in market momentum not too long ago – USDT on the Ethereum chain has stalled prior to now 4 months, and USDC has declined for the primary time in Might 2025 after months of progress. This phenomenon might sign that the market is transferring in direction of a new part of the cycle.
RWA.xyz, IOSG
L2 EcosystemIn
the broader RWA ecosystem, Ethereum maintains absolute dominance with a market share of 59.23% (excluding stablecoins), nevertheless it nonetheless faces key challenges.
