BlackRock and Regulators Drive $16T RWA Future Despite Liquidity Mysteries

The RWA (Real-World Asset) tokenization market is projected to reach $16 trillion by 2030, driven by institutional adoption and evolving regulatory frameworks. This growth is fueled by major financial institutions like BlackRock and Franklin Templeton, which are investing in tokenization infrastructure to enhance liquidity and integrate traditional finance with blockchain technology. Real estate is anticipated to emerge as the largest tokenized asset class, significantly impacting cross-market liquidity and decentralized finance (DeFi) growth.

Regulatory clarity in key jurisdictions such as the U.S. and Hong Kong is facilitating the entry of traditional financial institutions into the RWA tokenization space, fostering technological advancements and improved financial integration. Central banks and public institutions are also exploring tokenization to enhance collateral mobility and transparency in monetary operations, potentially boosting market credibility and infrastructure reliability. However, challenges remain, including tax and accounting implications, which vary by jurisdiction and asset type, requiring careful consideration by investors and issuers.

Currently, the tokenized RWA market has seen substantial growth, with platforms like RWA.xyz reporting a total on-chain value of $26.46 billion as of August 2025. Ethereum remains the dominant network for RWA tokenization, hosting 316 tokenized assets totaling $7.537 billion. Other notable networks include ZKsync Era, Polygon, and Solana. The market's growth is underscored by the increasing participation of institutional and retail investors, with over 367,000 asset holders and 268 issuers active in the space.

Despite this progress, secondary market liquidity for RWA tokens remains limited, with most tokens held by institutions or issued in closed environments with restricted trading. Active secondary trading is hindered by the lack of broader exchange listings and robust DeFi integration. Furthermore, on-chain data from RWA.xyz shows that while tokenized U.S. Treasuries dominate the market, other asset classes like real estate and fine art exhibit low turnover and fragmented secondary markets. This suggests that while the infrastructure for tokenization is advancing, the ability to trade these tokens efficiently has not kept pace.

To overcome these challenges, experts propose hybrid market structures that combine regulated, centralized platforms for primary issuance with decentralized protocols for secondary trading. Incentives for liquidity providers, improved transparency, and standardized valuation practices are also seen as critical to enhancing RWA liquidity. Additionally, regulatory modernization and broader access, particularly through innovations like the EU’s DLT MTFs and the U.S. STABLE Act, are expected to play a pivotal role in unlocking the full potential of RWA tokenization.

As the market continues to evolve, the convergence of traditional finance and blockchain technology is reshaping global financial systems. The integration of RWAs into DeFi protocols and the development of institutional-grade custody solutions are set to drive further adoption. However, the industry must address complex security and regulatory challenges to ensure that the promise of tokenization is matched by resilience and trust. By combining institutional-grade compliance, advanced auditing, and transparent frameworks, the RWA ecosystem can transition from issuance-centric to transaction-centric design, fostering vibrant secondary markets and reducing liquidity risk.

Source:

[1] Skynet: RWA Tokenization Market to Reach $16T by 2030 (https://cryptonews.com/news/skynet-rwa-tokenization-market-16t-2030/)

[2] RWA Tokenization Market Expected to Exceed $16 Trillion ... (https://intellectia.ai/news/crypto/rwa-tokenization-market-projected-to-surpass-16t-by-2030)

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

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

[5] Tokenization Report Examines How Real World Assets ... (https://www.crowdfundinsider.com/2025/08/248059-tokenization-report-examines-how-real-world-assets-rwas-are-bridging-gap-between-tradfi-and-defi/)

[6] Marketing Real-World Asset Tokens: Building Trust 2025 (https://www.blockchainappfactory.com/blog/how-do-you-market-real-world-asset-rwa-tokens-and-build-trust-in-2025/)