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The market capitalization of tokenized real-world assets (RWAs) on public blockchains reached approximately $18 billion in early 2025, more than doubling from $10 billion in 2024, driven by stablecoin liquidity exceeding $238 billion [1]. This growth has attracted major institutions such as
, , , and Siemens, which see tokenization as a tool to enhance market efficiency. Assets span physical commodities like metals and energy, as well as financial instruments including real estate, ETFs, and stocks, all digitized for blockchain trading [1]. Despite an 85% year-on-year increase in market value, challenges persist. Regulatory uncertainty, opaque custody structures, and limited liquidity hinder broader adoption. Institutional investors remain cautious due to unclear legal enforceability and compliance risks [1]. To bridge traditional finance (TradFi) and blockchain, frameworks must ensure transparency, cross-chain interoperability, and auditable smart contracts. Platforms like MultiBank Group are cited as examples of firms addressing these needs, though consistent international standards are critical to reduce fragmentation and encourage participation [1]. Tokenization’s appeal lies in its potential to democratize access to previously illiquid assets. Fractionalized real estate, for instance, allows retail investors to purchase shares without full ownership, lowering entry barriers in high-cost markets. Secondary markets enable 24/7 trading, enhancing liquidity for assets like private debt and securitized products [1]. By integrating RWAs into institutional settlement and decentralized finance (DeFi), blockchain networks such as Ethereum and Solana gain practical utility beyond speculation. Stablecoin liquidity of $200–300 billion supports real-world collateral and structured financial products, anchoring digital assets in tangible value [1]. Analyst forecasts suggest exponential growth if regulatory clarity improves and infrastructure matures. Tokenized assets, including equities, bonds, and gold, could reach $30 trillion by 2030, with real estate-related offerings surpassing $4 trillion by 2035 [1]. Institutional momentum and advancements in scalability are key drivers. Companies like MultiBank Group are advancing this transition by tokenizing a $3 billion real estate initiative in Dubai, partnering with MAG and Mavryk to open income-generating property markets to broader investors [1]. The success of RWAs hinges on utility. Tokens with embedded real-world value—such as those tied to verifiable assets—build trust and resilience, distinguishing them from speculative cycles. Long-term viability depends on smart design, robust teams, and user-centric benefits [1]. While hurdles remain, dismissing RWAs overlooks their role in improving market access and liquidity. As frameworks strengthen and trust builds, tokenized assets are positioned to complement traditional finance with greater efficiency [1].Source: [1] Tokenized real-world assets: new fuel for the economy | Opinion (https://coinmarketcap.com/community/articles/6888ed99fcaaf324124259fe/)

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