RWA Tokenization Surges Past $20 Billion Mark Driven by Infrastructure Advancements

Real-world asset (RWA) tokenization has moved beyond the proof-of-concept stage, with over $20 billion in tokenized assets and significant institutional backing from major asset issuers. This shift marks the beginning of a transformative phase in on-chain finance, driven by rapid advancements in infrastructure and evolving market conditions.

Carlos Domingo of Securitize highlights that the real transformation in on-chain finance is just beginning. The next three years will be shaped by key technological and market drivers that will propel the tokenization of real-world assets. Technological advancements include the maturation of blockchain infrastructure, the evolution of smart contracts, the integration of on-chain identity protocols, the development of institutional-grade custody solutions, and the establishment of regulated marketplaces and exchange integrations.

Blockchain infrastructure, including layer 1s and layer 2s, is scaling quickly, reducing fees and improving user experience. This will make holding tokenized assets frictionless for both institutions and individuals. Smart contracts are becoming safer, more composable, and increasingly automated, with AI assisting in their design and auditing. On-chain identity integration will streamline onboarding processes without compromising privacy, which is crucial for institutional adoption and retail accessibility. Institutional-grade custody solutions, such as MPC wallets and regulated custody options, will address long-standing custody concerns, making tokenized assets truly investable at scale. Additionally, more tokenized assets will trade on regulated platforms and become available on-chain via compliant decentralized exchanges, driving liquidity and transparency across asset classes.

Market drivers include regulatory clarity, the emergence of tokenized treasuries as superior collateral and yield-bearing instruments, the evolution of stablecoins into a global settlement layer, full asset class coverage, and the acceleration of tokenization by both institutional players and emerging markets. Regulators in various regions are advancing frameworks for tokenized securities, stablecoins, and decentralized finance (DeFi), which will boost institutional confidence. Tokenized T-bills are emerging as safer and more capital-efficient instruments compared to stablecoins. With over $150 billion in circulation, stablecoins are evolving into programmable cash, enabling instant settlement, treasury funding, and foreign exchange trades across blockchains. Tokenization is expanding to cover public equities, private equity, bonds, credit, real estate, and commodities, moving beyond yield products to the full capital stack. Wall Street is actively piloting tokenization infrastructure, while emerging markets are leapfrogging legacy systems by adopting blockchain technology directly.

The next phase of RWA tokenization will be characterized by scalability, composability, and credibility. Institutions are no longer questioning whether to tokenize but are focused on how quickly they can implement it. The result will be a 24/7, globally accessible financial system built on trustless rails and powered by programmable assets. This transformation will redefine the financial landscape, making it more efficient, transparent, and accessible to a broader range of participants.