RWA Tokenization Market Surges 800% to $65 Billion Driven by Institutional Adoption

The global market for Real-World Asset (RWA) tokenization has experienced a remarkable surge, with the total value locked (TVL) reaching $65 billion in the first quarter of 2025. This represents an 800% growth over two years, driven by significant institutional adoption, which now accounts for 60% of the market share. This growth is underpinned by the strategic deployments of financial giants such as JPMorgan and BlackRock, alongside innovative companies like RealT and Centrifuge. These entities have demonstrated proven business models in tokenizing Treasury bonds, real estate, and supply chain finance, among other assets.

China has emerged as a leader in green asset tokenization, particularly through the tokenization of solar farms and charging stations. This initiative has achieved a significant milestone with $100 million in cross-border financing facilitated through regulatory sandboxes in Hong Kong. This development highlights China's innovative approach to leveraging blockchain technology for sustainable finance, attracting international capital from sovereign funds in the Middle East.

Major platforms such as Ondo Finance, RealT, and Centrifuge have showcased successful business models in various sectors. Ondo Finance, for instance, has surpassed $1 billion in TVL, consolidating its leadership in Treasury bond tokenization. RealT has managed $970 million in assets, with notable property appreciation in Detroit. Centrifuge, on the other hand, has supported over $1 billion in financing through the tokenization of SME receivables, demonstrating the potential of blockchain technology in enhancing liquidity and reducing financing costs.

Despite these advancements, challenges remain. Regulatory fragmentation, technical vulnerabilities, and liquidity stratification pose significant risks. The divergence in standards between the US SEC and Hong Kong SFC, for example, creates compliance hurdles. Additionally, the concentration of trading volume in top assets, which account for 90% of the market, highlights the need for broader asset diversification.

Looking ahead, the projected market size for RWA tokenization is expected to surpass $16 trillion by 2030. This growth is supported by technological breakthroughs such as blockchain scaling solutions, oracle upgrades, and privacy computing. Chinese teams have independently developed cross-chain bridge technology, achieving 48-hour cross-border financing and setting new industry records. These advancements, coupled with regulatory friendliness in regions like Hong Kong, are poised to drive further growth in the RWA market.