"RWAs Surge as Bitcoin Stagnates, Institutions Eye $50B in 2025"

Real-world assets (RWAs) are gaining traction among investors seeking stable, yield-generating alternatives amid Bitcoin's recent price stagnation and global market uncertainties. RWA tokenization refers to financial products and tangible assets like real estate and fine art minted on the blockchain, increasing investor accessibility and trading opportunities of these assets.

Bitcoin (BTC) fell below the $100,000 psychological mark on Feb. 4, as investor sentiment was hit by global trade war concerns following new import tariffs announced by the US and China. Bitcoin's lack of momentum may attract more investment into RWAs, wrote Alexander Loktev, chief revenue officer at P2P.org, an institutional staking and crypto infrastructure provider.

Loktev believes that Bitcoin's crab walk may lead to new all-time highs for onchain RWAs in 2025. He predicts that the total value locked (TVL) in RWAs could reach $50 billion, driven by major financial institutions like BlackRock and JPMorgan's growing involvement in tokenization. Traditional finance (TradFi) institutions are starting to view tokenized assets as a serious bridge to DeFi, attracted by digital asset investments with predictable yields.

Onchain RWAs recently surpassed a cumulative all-time high of $17.1 billion across 82,000 asset holders. Marcin Kazmierczak, co-founder and chief operating officer of blockchain oracle solution RedStone, believes that RWAs are set to attract a significant share of the $450 trillion global asset market. Even a modest 1-2% shift of these assets to blockchain-based RWAs could drive significant growth in 2025, thanks to their ability to democratize investor access and create more liquidity.

Crypto volatility may invite more institutional investment into RWAs. Bhaji Illuminati, chief marketing officer at Centrifuge, an RWA-based DeFi lending protocol, expects RWAs to emerge as one of the leading crypto investment narratives for 2025. Huge swings in crypto prices serve as a reminder of the importance of stable, yield-bearing assets, and RWAs, especially fixed income, provide exactly that: a portfolio hedge against crypto volatility. Several management consulting firms project that the RWA market could grow 50-fold by 2030, reaching up to $30 trillion, as traditional financial institutions continue integrating blockchain