The tokenized real-world asset (RWA) market has grown to $7.9 billion in 2024, with expectations of doubling in size in 2025. Tokenization of assets like bonds and money markets has been driven by demand from both DeFi and traditional finance sectors. The value of tokenized assets peaked at $8.52 billion in early 2025 but later decreased due to users leaving Usual Protocol. The growth of the RWA market has been influenced by legacy DeFi protocols like Maker and Tether Gold, as well as BlackRock's BUIDL token. The main use case for tokenized assets currently is increased security for DeFi protocols. Tokenized RWA are often linked to highly liquid assets and are primarily used as collateral for loans. The influx of new protocols has driven the growth of the market, including the significant impact of Usual Protocol. Tokenization of RWA is mainly done on Ethereum, posing challenges for high-activity assets. The RWA tokenization market is small compared to the overall available assets, and future growth may be limited by the size of the crypto market and potential regulations. However, the RWA sector has recently recovered to a total market capitalization of over $38 billion. Chainlink and Ondo Finance are among the leading projects providing infrastructure for reliable tokenization and data management. RWA has shown positive growth and is ahead of other altcoin trends.
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