Regulators and Institutions Drive $16T RWA Future

The tokenization of real-world assets (RWA) is projected to grow into a multi-trillion-dollar market, with the RWA tokenization market expected to reach $16 trillion by 2030, according to the 2025 Skynet RWA Security Report [1]. This expansion is driven by increasing collaboration between traditional financial institutions and decentralized finance (DeFi), which is unlocking new efficiencies and opportunities for yield generation and liquidity management. The report highlights the tokenization of U.S. Treasuries as a key catalyst, with the market for tokenized U.S. Treasury assets projected to reach $4.2 billion in 2025, driven largely by activity in short-term government bonds [1].

Regulatory progress in Hong Kong, Singapore, and the United States is creating a foundation for broader institutional participation. As regulatory clarity improves, the adoption of tokenized assets is being facilitated by the development of frameworks that encourage trust and compliance. These developments are especially important for ensuring the legitimacy and scalability of RWA tokenization across diverse jurisdictions [1].

Despite the positive trajectory, the report underscores structural challenges that must be addressed for the market to achieve its full potential. Secondary market liquidity for RWA tokens remains limited, largely because most tokens are held in closed environments by institutional players. Broader exchange listings and deeper integration with DeFi protocols are needed to support active secondary trading [1]. Additionally, the report highlights the importance of robust security measures, emphasizing the need for regulated custodians and blockchain infrastructure to mitigate risks such as smart contract vulnerabilities and cyber threats [1].

The potential for RWA tokenization is not limited to government bonds. Institutions are actively exploring tokenization across a range of asset classes, including private credit, real estate, commodities, and even intellectual property [1]. These assets, often characterized by low liquidity and complex pricing, stand to benefit from tokenization’s ability to streamline settlement processes and expand access to new investor bases. However, the report also notes that these opportunities come with unique challenges, including the need for standardized risk controls and the development of clear tax and accounting treatments for tokenized assets [1].

The current state of the RWA market is already showing signs of rapid growth. As of mid-2025, the total value of tokenized real-world assets on public blockchains has neared $18 billion, with Ethereum serving as the dominant network, accounting for 51.69% of the market [2]. U.S. Treasuries represent the largest asset class, with BlackRock’s BUIDL fund holding $2.399 billion in tokenized assets [2]. Other prominent tokenized assets include tokenized gold (PAXG and XAUT) and institutional money market funds. The market is also showing signs of diversification, with increasing participation from platforms like Securitize, which manages over 70% of the U.S. tokenization market [3].

Looking ahead, the report stresses that infrastructure investments and continued regulatory support will be critical for meeting the $16 trillion market size by the end of the decade. The convergence of TradFi and DeFi is seen as a transformative force, combining the reliability of real-world yields with the composability and liquidity of blockchain-based systems [1]. However, for this vision to be fully realized, the market must address issues of secondary market access, regulatory alignment, and technological robustness to build confidence among both institutional and retail investors [1].

Source:

[1] 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)

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

[3] Asset Tokenization Statistics 2025: Uncover Growth Trends (https://coinlaw.io/asset-tokenization-statistics/)