RWA Tokenization Surges 66% by 2025 as Banks Embrace Blockchain

Bank of America has identified a notable acceleration in the tokenization of real-world assets (RWA), signaling a shift in how traditional financial instruments are managed and traded. The bank's reports indicate that investors are increasingly exploring the tokenization of equities, bonds, and real estate, with a focus on leveraging blockchain to streamline asset management and improve liquidity [1]. This development is seen as part of a broader transformation in financial infrastructure, driven by the growing appeal of blockchain-based solutions [2].

The bank notes that tokenized real estate assets, in particular, are drawing attention, with forecasts suggesting a 66% increase in tokenization volumes by 2025. Ethereum and associated protocols are becoming central to these efforts, supporting on-chain transactions that enable round-the-clock trading and instant settlement [3]. Bank of America is monitoring over $16 billion in tokenized real estate, a figure that highlights the scale of current activity and the bank’s role in tracking this emerging trend [4].

The trend is described as entering a “full-scale expansion phase,” indicating a departure from earlier pilot programs and limited trials. Institutional investors are now participating more actively, contributing to a level of market engagement that surpasses previous cycles [5]. Analysts suggest that this growth could reshape financial markets by introducing new levels of efficiency and reducing friction in traditional transactions [6].

However, the expansion of RWA tokenization also raises regulatory considerations. As digital assets gain traction, the need for updated frameworks to govern their use becomes increasingly evident. The regulatory response will likely play a key role in determining the long-term trajectory of tokenization in global markets [7].

Despite concerns about potential disruption to traditional financial institutions, the analysis suggests that major banks may be more adaptable than commonly assumed. The evolving landscape indicates that blockchain technology is not just a niche innovation but a force with the potential to integrate into mainstream financial systems [8].

This momentum in RWA tokenization underscores the growing convergence of traditional finance and blockchain technology, as more institutions recognize the benefits of digital transformation in asset management.

Source:

[1] https://www.coindesk.com/markets/2025/08/01/tokenization-of-real-world-assets-is-gaining-momentum-says-bank-of-america

[2] https://www.mexc.com/news/bank-of-america-tokenization-of-real-world-assets-is-on-the-rise/63345

[3] https://www.panewslab.com/en/articles/upy5bj8p

[4] https://coinmarketcap.com/community/articles/688d30a2ca13f633bfd90441/

[5] https://www.cointime.ai/flash-news/bank-of-america-86788

[6] https://www.ainvest.com/news/rwa-tokenization-gains-momentum-financial-infrastructure-evolves-2508