Market Overview

Real-world asset (RWA) tokenization refers to converting ownership rights in tangible or financial assets, like currency, stocks, bonds, or real estate, into digital tokens on a blockchain. This process enables fractional ownership and easier trading of traditionally illiquid assets, bringing increased accessibility, transparency, and liquidity to markets. In recent years, the global on-chain RWA market has expanded rapidly. The total value of non-stablecoin tokenized real-world assets grew from roughly $5 billion in 2022 to about $24 billion by mid-2025, a 380% increase in just a few years. RWA tokenization, including the stablecoin and non-stablecoin segments, is projected to be the fastest-growing sector in the digital assets space.

The growth trend is accelerating: the on-chain RWA market (excluding stablecoins) reached ~$15 billion by the end of 2024 and continued to over $24 billion by mid-2025, a remarkable ~85% year-on-year expansion. This momentum signals a transition from experimental pilots to scaled adoption, even amid broader crypto market volatility.

Major Segments

Tokenized private credit (e.g. on-chain loans, structured credit products) has surged to become the largest non-stablecoin RWA segment, accounting for about $14 billion of the $24 billion on-chain market as of mid-2025. This reflects significant institutional issuance of tokenized debt. Tokenized government bonds are another fast-growing category: on-chain U.S. Treasury products and funds exceeded $1.5 billion in market value by mid-2024. Major examples include BlackRock’s BUIDL fund and Franklin Templeton’s tokenized government money fund. These on-chain treasury tokens offer the safety and yield of government bonds with the 24/7 tradability of crypto markets. Real estate tokenization remains nascent but is gaining traction through pilot projects. Notably, major asset managers like KKR and Hamilton Lane have partnered with tokenization platforms to offer tokenized fund shares to qualified investors. Overall, credit, government debt, and funds/equities, including real estate vehicles, are emerging as the primary segments driving on-chain RWA volume in 2025.

Institutional Participation and Technology Trends

A key feature of this RWA expansion is the deep involvement of large financial institutions and fintech platforms. What began as small-scale trials has evolved into production-scale deployments by some of the world’s largest asset managers, banks, and issuers. BlackRock, JPMorgan, and Franklin Templeton are actively using blockchain infrastructure for real-world assets. Chainlink, the world’s largest blockchain oracle network, is establishing the data and connectivity layer that underpins institutional adoption. Clearer regulations and proven cost and efficiency gains are driving this institutional traction. Meanwhile, governments are beginning to recognize blockchain as essential infrastructure with notable on-chain sovereign bond exploration.

While Ethereum and its Layer-2 networks currently host the majority of tokenized assets, new blockchain environments are emerging, including Bitcoin-based infrastructure for RWAs. Bitcoin-native networks and sidechains are being leveraged for RWA tokenization. Blockstream’s Liquid Network supports fast, confidential transfers of tokenized securities and has been used for issuance of bonds and stablecoins. The RGB protocol enables privacy-preserving smart contracts and asset issuance anchored to Bitcoin.

In late 2024, Tether launched the Hadron by Tether platform to simplify tokenization of real-world assets across multiple chains. The platform integrates Bitcoin Layer-2 protocols alongside Ethereum. Chainlink supports tokenized real-world assets through secure price oracles, Proof of Reserve attestations, and cross-chain interoperability. Their services have been integrated into pilots with the DTCC, and adopted by startups like Backed for tokenized stocks and ETFs. These initiatives position Hadron by Tether and Chainlink as key infrastructure for enterprise-grade tokenization.

The RWA market is global and growing fast, led by on-chain Treasuries and private debt, and increasingly supported by institutional-grade platforms on both Ethereum and Bitcoin ecosystems. The stage is set for even larger capital flows as technology and regulatory frameworks continue to mature.

2030 Forecast

The tokenized RWA sector is poised for robust growth through 2030, driven by accelerating institutional adoption and improving regulatory clarity. Industry forecasts, while varied, all anticipate trillions of dollars moving on-chain over the next five years. For instance, Citigroup analysts project that blockchain-based tokenization of real and financial assets could reach $4–5 trillion in value by 2030. This would be an ~80× increase from early 2023 levels. Other studies are even more bullish: a 2022 Boston Consulting Group report estimated a $16 trillion tokenization opportunity by 2030, and more recent analysis by Ripple/BCG sees the market potentially rising to nearly $20 trillion by 2033.

Our 2030 forecast projects the total value of tokenized real-world assets rising from the tens of billions today to on the order of $10 trillion by 2030. This scenario implies aggressive compound annual growth. It assumes continued momentum in tokenizing debt and credit instruments, plus increasing tokenization of real estate, equity, and other alternative assets. Ethereum and compatible networks will likely remain the primary rails, but we expect a diversified multi-chain landscape. By 2030, a significant share of RWA volume may also reside on Bitcoin layer-2 ecosystems, purpose-built institutional blockchains, and high-performance public chains.

Projections are illustrative, assuming a CAGR of about 189% from 2025 to 2030, with growth expected to moderate slightly after 2028. Outcomes will depend on regulatory clarity, enterprise adoption, and technology scalability.

By 2030, tokenized assets are projected to account for 5-10% of global investable assets across fixed income, equities, real estate, and alternatives. Achieving this requires legal clarity, institutional inflows, blockchain scalability, and secondary market liquidity. We also expect convergence in infrastructure and improved integration with traditional financial systems.

Opportunities

The global expansion of RWA tokenization is being propelled by several powerful drivers. These include advances in programmable financial tools, the proliferation of stablecoin-based settlement rails, and the ability to broaden investor access. Each of these represents a fundamental shift in how assets are created, managed, and distributed:

Programmable Finance & Efficiency Gains – Smart contracts can automate payments, compliance checks, and settlement processes, potentially reducing operational costs by 40–60% and increasing transparency across financial systems.

Stablecoin Rails and Always-On Settlement – 24/7 trading enabled by stablecoins reduces counterparty risk and accommodates global time zones, creating a more inclusive and liquid market.

Broader Capital Access & New Investor Base – Fractionalization allows smaller investors to participate in high-value asset classes traditionally reserved for institutions, thereby expanding the investor pool and enhancing diversification opportunities.

Risks

Despite the significant promise, several risks could impede the growth of RWA tokenization. These range from policy and legal uncertainties to market frictions and technology vulnerabilities. A comprehensive approach is needed to mitigate these risks:

Regulatory Fragmentation – Inconsistent global rules for digital assets limit token transferability and hinder cross-border adoption.

Legal Recognition and Ownership Rights –Lack of standardized frameworks to define tokenized asset ownership creates legal ambiguity.

Market Liquidity Risk – Many tokens suffer from low secondary market activity, which undermines their utility.

Technology and Smart Contract Vulnerabilities – Bugs or exploits in token infrastructure can lead to loss of funds or systemic mistrust.

Custody and Operational Risk –Without robust custody and recovery solutions, investor confidence in tokenized real assets could be shaken.

Strategic Insights

To capitalize on the benefits of RWA tokenization while mitigating its risks, industry stakeholders must take deliberate and strategic actions:

Collaboration – Public–private partnerships help define standards and accelerate adoption. Successful early pilots, such as the DTCC’s Smart NAV project with Chainlink, or Hamilton Lane’s tokenized funds, demonstrate the benefits of joint initiatives.

Prioritize Compliance – Projects should design for compliance from day one, including permissioned access, wallet whitelisting, and regulator engagement. Transparent disclosures and robust investor protections build trust.

Start Small, Scale Gradually – Tokenizing a single asset class or pilot fund enables experimentation and refinement before broader rollout.

Invest in Infrastructure and Talent – Teams must align blockchain integration with enterprise systems and secure custody. Hiring cross-functional teams (legal, tech, ops) will be crucial.

Build for Interoperability and Scale – Use open standards and ensure pathways for cross-chain functionality. Projects that optimize for long-term adaptability will be best positioned to scale as the industry matures.

Sources

• Decrypt: https://decrypt.co/239190/tether-hadron-6-5b-tokenization
• The Defiant: https://thedefiant.io/rwa-tokenization-market-hits-24b
• RedStone Finance: https://redstone.finance/reports/real-world-assets-2025
• Mapleblock Capital: https://mapleblock.capital/research/tokenized-treasuries
• Cointelegraph: https://cointelegraph.com/news/citi-forecast-tokenization-2030
• Ledger Insights: https://www.ledgerinsights.com/bcg-addx-tokenization-16-trillion
• FintechNews Switzerland: https://fintechnews.ch/blockchain_bitcoin/tokenized-assets-market-to-reach-18-9t-by-2033
• Hadron by Tether Blog: https://hadron.tether.to/en#blog
• Cointelegraph (Citi GPS): https://cointelegraph.com/news/tokenization-market-outlook
• RedStone Finance Onchain RWA Risks: https://redstone.finance/insights/tokenization-barriers-2025

About Pointsville

Pointsville is an end-to-end alternative asset factory

• We are your one-stop shop for loyalty, stablecoins, and alternative asset digitization & management.
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  • Enable regulatory compliance and reporting for loyalty and alternative assets

To learn more, visit pointsville.com.