Regulators and Tech Drive $16T RWA Tokenization Future

The tokenization of real-world assets (RWA) is on track to become a multi-trillion-dollar market, with forecasts suggesting it could surpass $16 trillion by 2030, according to the 2025 Skynet RWA Security Report. This growth is driven by increasing collaboration between traditional financial institutions and decentralized finance (DeFi) ecosystems, as well as regulatory advancements in key financial hubs like Hong Kong, Singapore, and the United States. The report highlights that tokenized U.S. Treasuries alone are projected to reach $4.2 billion in 2025, with short-term government bonds accounting for the bulk of activity. The convergence of TradFi and DeFi is enabling improved efficiency, transparency, and accessibility in capital markets, particularly for investors seeking yield through digitized assets.

The expansion of RWA tokenization is being propelled by the digitization of a broad range of assets, including government bonds, private credit, real estate, commodities, and even intellectual property. These categories, often less liquid and harder to price, stand to benefit from tokenization through streamlined settlement processes and the potential for broader investor participation. Institutional players, including major banks and asset managers, are increasingly exploring tokenization as a tool to digitize assets and enhance liquidity management. Additionally, platforms in Hong Kong, Singapore, and the U.S. are setting regulatory frameworks that could accelerate institutional entry into this emerging sector. The adoption of RWA tokenization is also supported by infrastructure investments and regulatory clarity, which the Skynet report identifies as essential for achieving the projected market size by 2030.

Despite the optimistic outlook, the RWA tokenization market faces several structural challenges that could impact its growth trajectory. Secondary market liquidity remains limited, as most RWA tokens are held by institutions or issued in closed environments with restricted trading. Broader adoption may require robust exchange listings and DeFi integration to enable active secondary trading. Cybersecurity and smart contract vulnerabilities also pose significant risks, with the Skynet report emphasizing the need for regulated custodians with strong security infrastructure, such as federally chartered crypto banks or firms licensed by reputable authorities. Additionally, tax and accounting implications for tokenized assets vary by jurisdiction and asset type, creating complexities for investors and issuers as existing rules struggle to keep pace with blockchain-based formats.

The Asia-Pacific region is playing a pivotal role in the development of RWA tokenization, with Singapore, Hong Kong, Australia, and Japan leading the charge through regulatory reforms and live-market adoption. Initiatives such as Singapore’s MAS Project Guardian are advancing standardization and interoperability in fixed income, FX, and fund management. In Hong Kong, multi-currency digital bond issuances are attracting private investors, while Australia is testing live pilots to identify operational challenges. Japan’s Financial Services Agency (FSA) has outlined market development pathways for digital securities, contributing to a growing RWA ecosystem. These efforts reflect a shared priority across APAC regulators to align risk enforcement, interoperability, and KYC/reporting standards, which are critical for fostering trust and institutional participation.

Looking ahead, the success of the RWA tokenization market will depend on overcoming operational and regulatory bottlenecks. Interoperability between Eastern and Western financial systems is a key focus area, with efforts to standardize ledger-to-ledger connections, align accounting and tax treatments, and address data sovereignty concerns. The report also underscores the importance of multi-chain infrastructure in supporting RWA activity, with tokenized treasuries and real estate products gaining traction on networks like XRPL and BNB Chain. As the market matures, the integration of central bank money, smart contract governance, and secondary market depth will become increasingly vital for ensuring the stability and scalability of RWA tokenization. With institutional capital already showing strong interest and regulatory frameworks evolving, the path to a $16 trillion market by 2030 appears to be within reach, contingent on continued innovation and collaboration across the ecosystem.

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] Asset Tokenization Statistics 2025: Uncover Growth Trends (https://coinlaw.io/asset-tokenization-statistics/) [3] Skynet: RWA Tokenization Market to Reach $16T by 2030 (https://cryptonews.com/news/skynet-rwa-tokenization-market-16t-2030/) [4] Asia Pacific Advances RWA Tokenization in 2025 (https://www.mitrade.com/insights/news/live-news/article-3-1064269-20250824)