RWA Market Sees 260% Rise Despite Industry Skepticism

The real-world asset (RWA) market has emerged as a significant trend in the cryptocurrency industry in 2025, with numerous companies embracing the tokenization of assets. While some studies suggest a substantial 260% rise in RWAs this year, industry executives have expressed skepticism about the reported market size, citing the sector's nascent stage and relatively small scale.

Industry experts attribute the slow adoption of RWAs to outdated regulations, limited access, and widespread misunderstandings about how tokenized assets are backed. The backing of RWAs is a multifaceted issue that extends beyond technology, encompassing legal and financial considerations.

Adam Levi, co-founder of the tokenization platform Backed, emphasized that the backing of RWAs is crucial because crypto tokens are often driven by hype, marketing, or memes rather than real fundamentals. For tokenized equities, trust depends on the product's structure, transparency, and the issuer's regulatory compliance. Levi highlighted that the guarantee of backing is a legal and financial obligation, not just a technological one. Secure smart contracts, tech platforms, and custody integrations are essential, but trust in financial products comes from enforceable commitments under strong regulatory frameworks.

Alan Konevsky, executive vice president of TZero, noted that the tokenization of RWAs, particularly those based on physical objects like real estate or collectibles, cannot be fully automated. Financial instruments, even when tokenized, can be fully automated, but the tokenization of physical assets requires intermediation by traditional market participants.

Ross Shemeliak, co-founder of Stobox, pointed out that the issue of RWA backing is not unique to crypto, as similar challenges exist in traditional investments like real estate. Tokenization providers conduct enhanced due diligence and review the offering memorandum, underlying assets, and legal restrictions. However, this process is not a 100% safety guarantee, as verification complexities can sometimes lead to scam projects. Shemeliak suggested that data-rich RWA tokens, which embed or link to structured, dynamic data about the asset, could enhance transparency, interoperability, and investor trust.

Data-rich RWA tokens represent ownership and include information such as valuation, legal status, and other structured, dynamic data. This approach creates a new level of transparency and trust, addressing the shortcomings of traditional securities and early-stage tokens. Industry examples of data-rich RWA token technology include Chainlink’s Proof of Reserve and Cross-Chain Interoperability Protocol, implemented by platforms like Backed Finance, Maple Finance, and Centrifuge.

Stobox identified the top five jurisdictions for running a tokenization deal as the British Virgin Islands, the US State of Wyoming, Liechtenstein, Singapore, and the Marshall Islands. Despite being among the top five in terms of regulatory quality and efficiency, Singapore and Luxembourg remain underutilized as special purpose vehicle destinations for tokenization deals, accounting for less than 2% of global deals.