Tokenized Real-World Assets Market Surges 140% to $24 Billion

The market for tokenized real-world assets (RWAs) has reached a significant milestone, surpassing $24 billion in value as of June 2025. This growth is highlighted in the newly published RWA in On-Chain Finance Report: H1 2025 Market Overview, co-authored by RedStone, Gauntlet, and rwa.xyz. The report underscores the rapid expansion of the RWA market, which now ranks as the second-fastest-growing category in the crypto sector, trailing only stablecoins. This surge is largely attributed to the issuance of private credit on blockchain networks, which has become a cornerstone for the tokenization of real-world assets.

In 2022, the RWA market was valued between $5 and $10 billion. By 2025, private credit alone accounts for over $14 billion, or more than half of the total RWA market. This growth is driven by institutional demand for higher yields and faster liquidity access. Marcin Kaźmierczak, co-founder of RedStone, noted that "private credit has become the foundation for tokenization’s real-world impact. Institutional finance is actively moving into blockchain, exploring and deploying capital in meaningful ways."

Institutions are drawn to tokenized private credit due to its yield opportunities, which average between 8% and 12%. Products like Apollo’s ACRED fund, issued through Securitize and integrated with DeFi protocols such as Morpho and Drift, offer institutional-grade compliance and programmable yield, making them suitable as collateral in decentralized finance. Tokenized US Treasuries also play a significant role, making up about $7.5 billion of the market. Platforms like Ondo Finance and Backed are issuing short-term Treasury products to both institutional and retail participants.

According to the RedStone report, the largest RWA protocols by total value locked (TVL) include BlackRock’s BUIDL fund with $2.864 billion, Ethena’s synthetic USDtb token with $1.46 billion, and Ondo Finance with $1.392 billion. Commodity-backed RWAs such as Paxos Gold and Tether Gold also contribute significantly, holding $897 million and $821 million respectively. Overall, the market now surpasses $12 billion in publicly tracked on-chain TVL.

A recent report estimates that tokenized private credit represents 58% of total RWA value, with US Treasuries making up 34%. The remainder is distributed among commodity-backed tokens and newer categories like tokenized real estate. On March 18, it was confirmed that the $10 billion TVL mark had already been crossed, marking one of the fastest growth cycles in the digital asset sector.

RedStone’s report also explains how traditional crypto assets use high-frequency oracles to track real-time exchange prices. In contrast, RWAs require pricing mechanisms based on Net Asset Value (NAV), which are updated daily or weekly and derived from fund administrators or custodians. Instead of focusing on speed, oracles must now prioritize accuracy and auditability. Kaźmierczak emphasized that "RWAs aren’t volatile tokens. You’re dealing with assets that don’t move every second but carry legal and financial obligations." RedStone and Chainlink are adapting to these needs by providing purpose-built oracle feeds for tokenized fund options, private credit instruments, and yield-bearing stablecoins. These tools enable DeFi platforms interacting with RWAs to provide accurate, regulatory-aligned valuations.

Permissioned networks like Aave’s Horizon, Maple, Spark, and Pendle’s Citadels offer several ways for accredited investors to buy tokenized securities, and for retail users to provide liquidity or earn yield through derivatives. Ethereum is the leading public blockchain for RWA integration, hosting over $7.5 billion in tokenized value. ZKSync is also significant in private credit issuance, particularly through relationships with Victory Park Capital. Traditional finance-backed blockchains such as the Canton Network, supported by major financial institutions, are now processing tokenized repos and bond transactions in the trillions.