Tokenization of Real-World Assets Surges 66% in 2025, Unlocking Trillions in Value

Bitwise Investments has released a report highlighting the growing momentum in the tokenization of real-world assets, a trend that is expected to unlock trillions in value. The report, featuring insights from Chief Investment Officer Matt Hougan and Research Director Ryan Rasmussen, underscores the potential for significant value creation as more traditional assets are tokenized on blockchain platforms.

According to the report, the tokenization trend is gaining traction with major institutions like Robinhood, indicating a shift towards mainstream adoption. While full on-chain trading of securities may take years, even tokenizing a small percentage of the traditional market could lead to substantial value creation. The report identifies leading public chains such as Ethereum and Solana as pivotal in this movement, advising investment in top-tier infrastructure projects.

The actions of companies like BlackRock and Tradeweb are cited as critical indicators of institutional interest, reinforcing the belief that the blockchain-based transformation of securities trading is imminent. The report also notes that market reactions have been largely positive, with industry players and analysts recognizing the long-term potential of merging traditional finance with blockchain. Hougan's insight that "it would be regrettable to misjudge the tokenization trend too early" reflects widespread caution and optimism in the crypto community.

Bitwise's CEO, Hunter Horsley, stated that "We are on the precipice of change in 2025... Tokenization’s transformative power may come from enabling a vast untapped supply of smaller businesses to access capital markets." This sentiment is echoed by the report's findings, which suggest that the tokenization of real-world assets could lead to enhanced liquidity and broader financial inclusion.

As of mid-2025, the total value locked (TVL) across major tokenization protocols has surged to $12.83 billion, up from $7.75 billion at the start of the year. This surge underscores the increasing adoption and integration of blockchain technology in traditional finance, transforming outdated, manual fund operations into a streamlined, modern financial operating system.

The tokenization of real-world assets is not just a speculative trend but a tangible shift in the financial landscape. Stablecoins, such as USDC and USDT, have already achieved over $250 billion in circulating supply, serving as the backbone for key crypto trading pairs. This foundation has paved the way for the next evolution: tokenized money market funds. BlackRock’s BUIDL fund, for instance, has surpassed $2.5 billion in assets under management, demonstrating the market's appetite for these innovative financial instruments.

The rapid growth of tokenized money market funds is just the beginning. The tokenization of private credit and funds, such as Apollo's ACRED, is poised to bring unprecedented transparency and efficiency. Smart contracts can automate complex processes like debt servicing and distributions, while an on-chain ledger provides a real-time, auditable record of performance. This creates a paradigm shift for traders, who can now analyze the real-time performance of tokenized securities, unlocking opportunities for more sophisticated risk management and alpha generation.

The implications of this trend extend beyond just new assets to trade. The tokenization of private credit means these assets can potentially be used as collateral within DeFi protocols. This would dramatically expand the Total Value Locked (TVL) in DeFi, deepen liquidity, and create more complex and robust lending markets. For traders, this means the value of governance tokens for protocols that successfully integrate RWAs could soar. It also introduces new arbitrage opportunities between on-chain tokenized assets and their off-chain equivalents.

The convergence of traditional finance and the digital asset space is accelerating, driven by the powerful trend of asset tokenization. Major asset managers are no longer just observing; they are actively participating. The launch and rapid growth of BlackRock's BUIDL tokenized institutional money market fund, alongside Franklin Templeton's BENJI platform and Apollo's on-chain private credit fund, signal a fundamental shift. For traders, this migration of real-world assets onto the blockchain isn't just background noise; it's the overture to a new era of market opportunities, liquidity dynamics, and cross-asset correlations.

The tokenization of real-world assets is fundamentally reshaping investment products for a digital-native era. While regulatory and KYC/AML hurdles remain, the trend is clear: blockchain technology is evolving from a speculative instrument into a modern financial operating system. The future of trading will involve not just speculating on crypto-native assets but analyzing the fundamentals of tokenized real-world value streams, creating a much deeper and more integrated global financial market.