Ethereum's New Standard Could Reshape Global Asset Ownership

A new Ethereum-based standard is aiming to establish a foundational framework for the tokenization of real-world assets (RWAs), signaling a maturing infrastructure in a sector that has historically struggled with scalability and adoption. This initiative aligns with a broader industry shift toward creating clear, interoperable, and legally compliant protocols for representing traditional assets on the blockchain.

The tokenization of RWAs has seen explosive growth in recent years, expanding from $5 billion in 2022 to approximately $24 billion by June 2025—a 380% increase. Several financial institutions and regulatory bodies are now actively participating in this transition. In Japan, Mitsubishi UFJ Financial Group (MUFG) recently completed one of the largest single-asset tokenizations to date by converting a ¥100 billion ($681 million) office tower in Osaka into digital tokens. The project, which allows fractional ownership and institutional transactions via Japan’s digital securities rails, underscores the growing acceptance of tokenization as a viable financial tool.

The rise of RWA tokenization is supported by evolving regulatory frameworks and infrastructure innovations. Dubai’s Land Department, for instance, has launched Prypco Mint, a platform that allows property tokenization with minimum investment thresholds as low as AED 2,000 (~$540). The initiative is projected to reach AED 60 billion (~$16 billion) in tokenized real estate by 2033. Meanwhile, Japan’s security-token framework has enabled the issuance of tokenized real estate and bond assets since 2021, paving the way for institutional-grade projects like MUFG’s Osaka building tokenization.

Technical infrastructure has also advanced in parallel. Chainlink’s Data Streams now provide real-time pricing data for U.S. equities and ETFs across 37 blockchains, facilitating transparent and efficient tokenization of traditional securities. Major institutions such as Goldman Sachs and BNY Mellon have launched tokenized money market funds on private chains, offering access to asset managers like BlackRock and Fidelity. These developments are bridging the gap between traditional finance and blockchain-based systems, enabling a new class of hybrid financial instruments.

DeFi platforms have further accelerated RWA adoption by providing liquidity mechanisms for tokenized assets. MakerDAO, for example, has leveraged RWA collateral to back its DAI stablecoin, while Ondo Finance’s USDY token has attracted $650 million in assets under management, demonstrating strong demand for tokenized yield products. These platforms have helped solve early liquidity issues by allowing tokens to serve as collateral and move across multiple venues.

The institutionalization of RWA tokenization is reshaping the competitive landscape for traditional financial services. Financial institutions that fail to adapt risk obsolescence as tokenized assets become more liquid, accessible, and cost-effective to trade. Meanwhile, new use cases are emerging at the edges of the market, including tokenized coffee trees, solar farms, and intellectual property, indicating a broadening scope for the technology.

Experts project that the RWA market, excluding stablecoins, could grow to $16.1 trillion by 2030 or $30.1 trillion by 2034. These forecasts highlight the transformative potential of tokenization to redefine how assets are owned, traded, and managed globally. As the Ethereum standard seeks to unify these efforts under a common protocol, the industry may be on the brink of a new era in asset representation and finance.