Ethereum News Today: RWA Tokenization Surges 70% YTD to $26.5 Billion as Institutions Fuel Growth

Generated by AI AgentCoin World
Monday, Aug 25, 2025 10:26 am ET1min read
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Aime RobotAime Summary

- RWA tokenization surges 70% YTD to $26.5B, projected to hit $16T by 2030 as institutions drive growth through yield optimization and liquidity management.

- Ethereum dominates 76% of tokenization market (including layer-2s), supported by robust security and global regulatory frameworks in Hong Kong, Singapore, and the U.S.

- Challenges persist: limited secondary liquidity, jurisdictional legal disparities, and cybersecurity risks require secure custodians and simplified on-ramps for broader adoption.

- Institutional confidence and DeFi-traditional finance convergence position $400T traditional markets as tokenization's long-term opportunity despite current barriers.

The tokenization of real-world assets (RWA) is rapidly transforming financial markets, with the global market projected to reach $16 trillion by 2030, according to the 2025 Skynet RWA Security Report [1]. This growth is being driven by increasing institutional interest and the continued advancement of blockchain technology. As

financial institutions
and blockchain-native firms explore tokenization, they are leveraging it to enhance yield opportunities and liquidity management [1].

Currently, the market for tokenized real-world assets stands at a record high of $26.5 billion, a 70% increase year-to-date [1]. Tokenized U.S. Treasuries alone are expected to reach $4.2 billion in value this year, underscoring the growing acceptance of digital assets in traditional finance [1]. The tokenization market spans a range of sectors, including private credit, trade finance, and money market funds, with private credit and U.S. Treasuries accounting for nearly 90% of the tokenized market’s value [1].

Ethereum remains the dominant platform in the tokenization market, holding a 55% market share when excluding layer-2 solutions. When including layer-2 networks such as ZKsync Era, Polygon, and Arbitrum, Ethereum’s dominance rises to 76% [1]. This leadership is attributed to Ethereum’s robust security, liquidity, and developer ecosystem. Regulated frameworks in regions such as Hong Kong, Singapore, and the U.S. are also playing a key role in accelerating institutional adoption, as they provide the clarity and stability needed for broader participation [1].

However, challenges remain. Limited secondary market liquidity and varying legal treatments across jurisdictions are key barriers to growth. Additionally, cybersecurity risks and smart contract vulnerabilities continue to be areas of concern. Skynet’s report emphasizes the importance of regulated, qualified custodians with secure infrastructure to mitigate these risks and build investor confidence [1].

Analysts note that institutional confidence is a critical factor in the market’s growth trajectory. As tokenization continues to evolve, the convergence of traditional finance and decentralized finance (DeFi) is emerging as a key driver of innovation [1]. The report also highlights the need for simplified on-ramps that align with existing investor protections to make tokenized assets more accessible to retail investors. Despite these challenges, the long-term potential remains strong, with the traditional finance market representing a $400 trillion opportunity for tokenization [1].

While the market is growing, obstacles such as liquidity constraints and security concerns must be addressed to unlock the full potential of tokenized assets. With continued progress in regulatory clarity and technological development, the projected $16 trillion market value by 2030 appears increasingly feasible [1].

Sources:

[1] Tokenization Market Set to Hit $16 Trillion by 2030: Institutions Drive the RWA Boom

https://coinmarketcap.com/community/articles/68ac7107296c7d12d01dc0ad/