Asia Drives RWA Revolution as $16T Future Takes Shape

The real-world asset (RWA) tokenization market is projected to surge to $16 trillion by 2030, according to a 2025 report by Skynet, driven by collaboration between traditional financial institutions and decentralized finance (DeFi) platforms. This forecast underscores the accelerating pace of RWA adoption, with U.S. Treasury tokenization expected to reach $4.2 billion in 2025, led by short-term government bonds. The report highlights growing interest from major banks and asset managers in tokenizing a wide array of assets, including debt instruments, commodities, and private credit, to enhance yield opportunities and liquidity management.

According to RWA.xyz, as of August 2025, the total value of tokenized real-world assets reached $26.49 billion, with Ethereum dominating the market at 51.71% of total value. The platform recorded over 367,427 asset holders and 268 issuers, reflecting the expansion of both institutional and retail participation in tokenized markets. U.S. Treasuries and gold tokens like PAXG and XAUT remain the most prominent asset classes, with PAXG alone accounting for $940 million in trading volume in July 2025.

Despite this growth, the report identifies structural hurdles, including limited secondary market liquidity, regulatory fragmentation, and cybersecurity risks. Tokenized real-world assets often face restricted trading environments, with most transactions occurring within custodial or regulated ecosystems. Smart contract vulnerabilities and the absence of standardized risk controls also pose challenges for long-term scalability. The report emphasizes the critical role of institutional-grade custodians and regulated intermediaries in mitigating these risks and building trust in tokenized markets.

Regulatory developments in key markets such as Hong Kong, Singapore, and the U.S. are creating fertile ground for institutional entry. Singapore’s Monetary Authority (MAS) is advancing tokenization through initiatives like Project Guardian, while Hong Kong’s multi-currency digital bond programs are attracting both regional and global investors. These regulatory frameworks align with a global push for “same risk, same rules,” ensuring compliance with KYC/AML standards while promoting cross-border interoperability.

Asia, in particular, has emerged as a leader in RWA innovation, with countries like Japan, Australia, and South East Asian nations actively piloting tokenized securities and real estate. These efforts are driven by the region’s large pools of savings and its strategic need for efficient cross-border financial infrastructure. Institutional adoption is also gaining traction, with major players like BlackRock, Ondo Finance, and Franklin Templeton issuing tokenized money market funds and treasury instruments. Meanwhile, private blockchains such as BNB Chain and XRP Ledger are expanding their offerings beyond Ethereum, adding to the diversity of RWA ecosystems.

However, the tokenization market still faces liquidity constraints. Academic studies and on-chain data reveal that many tokenized assets, particularly in real estate and fine art, remain illiquid, with low trading volumes and concentrated ownership. While commodity-backed tokens like PAXG and XAUT demonstrate strong secondary market activity, most tokenized assets exhibit a "buy-and-hold" dynamic rather than active trading. This liquidity gap raises questions about the practical realization of tokenization’s theoretical benefits, particularly in traditionally illiquid asset classes.

To unlock the full potential of RWA tokenization, the report recommends hybrid market structures, improved transparency, and regulatory modernization. Initiatives such as MakerDAO’s integration of tokenized U.S. Treasuries as collateral for stablecoins and the development of regulated token exchanges are early steps toward addressing these challenges. The future success of the RWA market will depend on continued progress in legal alignment, technical infrastructure, and investor education to support both institutional and retail participation.

Source:

[1] RWA.xyz | Analytics on Tokenized Real-World Assets (https://app.rwa.xyz/)

[2] RWA Tokenization Market To Reach $16T by 2030, Skynet Report Says (https://www.xt.com/en/blog/post/rwa-tokenization-market-to-reach-16t-by-2030-skynet-report-says)

[3] Tokenize Everything, But Can You Sell It? RWA Liquidity Challenges (https://arxiv.org/html/2508.11651v1)

[4] Asia Leads the Charge in RWA Tokenization (https://www.bitrue.com/blog/rwa-tokenization-asia-market)