Tokenized real-world assets, even excluding stablecoins, have grown to $7.9B in 2024. Multiple DeFi and traditional finance companies have looked into tokenization, setting up the sector for doubling its size in 2025.
Tokenized real world assets (RWA) grew to $7.9B with more diversity in 2024. The issuance of tokens based on bonds or money markets reflected demand from DeFi projects, as well as traditional finance testing out the potential for tokenization. The value of tokenized assets peaked at $8.52B in early 2025, later sliding due to users flowing out of Usual Protocol.
The value of tokenized real-world assets rose close to an all-time peak, led by legacy DeFi protocols like Maker and Tether Gold. BlackRock’s BUIDL token is still growing more conservatively, carrying $589.36M in tokenized money market instruments. Demand for BUIDL comes from Ondo and other DeFi protocols that are seeking a predictable and secure collateral. RWA is usually tied to blue-chip DeFi, and is used as a collateral for loans, which are then used for riskier trading activities.
With the expectations of a bull market in 2025, the main prediction is for the current tokenization sector to double its value locked. Currently, the main use case for tokenized assets is increased security for DeFi protocols.
Tokenized RWA are also more often tied to highly liquid assets, so far bypassing the tokenization of real estate or stocks, with some niche exceptions. Despite the relatively conservative approach, tokenized real-world assets \tripled their value in 2024, with more diverse issuers.
The biggest factor for growth was the inflow of new protocols, which quickly added more value locked. One of the biggest effects was due to Usual Protocol, which claims $1.24B in assets under management.
Most of the tokenized RWA end up as the basis for new types of stablecoins, or support older instruments. Gold is also a part of the well-established infrastructure for tokenization.
RWA tokenization still lacks a common standard
Crypto projects have already established their position with different approaches to tokenization. Recently, BlackRock’s CEO Larry Fink called for mass real-world asset tokenization, requesting the US Securities and Exchange Commission to approve of the mass tokenization for stocks and bonds. Fink spoke for the CNBC Squawk Box during the Davos World Economic Forum, explaining that tokenized assets would simplify share voting and ownership structures.
Tokenization may be easy for crypto projects, and multiple startups have created informal tokens based on stocks or markets. However, official tokenization may be a challenge when selecting the right chain and infrastructure.
Currently, most RWA tokenization still uses Ethereum (ETH), posing challenges for high-activity assets. Most tokenized RWA are held in treasuries, and have relatively small organic markets. In the case of mass tokenization, trading speed would be essential, testing the limit of even the fastest blockchains.
Tokenization among crypto projects is still small compared to the $1.64 trillion in available assets. However, the constraints from the size of the crypto market may limit the growth. Expected new regulations from the USA may affect the RWA tokenization process and introduce standards and limitations.
RWA narrative goes through market recovery
Among crypto projects, RWA is still mostly a narrative grouping some of the most prominent DeFi projects. Recently, the whole RWA sector recovered, to over $38B in total market capitalization.
The biggest winners were Chainlink (LINK) and Ondo Finance (ONDO), which aim to provide the infrastructure for reliable tokenization and data management. ONDO remains among the leading tokens on a 90-day time frame, along with other RWA assets.
RWA assets outperformed on a 90-day time frame, and are emerging with a slight advantage after traders moved away from the AI agent narrative (Source: Dune Analytics)
RWA is one of the few narratives to get ahead of meme tokens on a weekly time frame. Currently, most altcoin narratives lag behind Bitcoin (BTC), but RWA comes ahead of other trends.
Based on the relative strength metric, AI agents had the biggest weekly loss, while interest switched over to RWA, with small positive growth. RWA has always remained a staple narrative with positive growth for the last three months, though lagging behind the explosive development of AI agents.
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