Tokenized Real-World Assets Market Surges 260% in H1 2025

Tokenized real-world assets (RWAs) have emerged as one of the fastest-growing categories in the crypto space, second only to stablecoins. According to a comprehensive report titled ‘RWA in On-chain Finance Report: H1 2025 Market Overview’ by modular blockchain oracle RedStone, in collaboration with Gauntlet and rwa.xyz, the tokenized RWA space has evolved from a buzzword into a multi-billion-dollar financial system. Since January 2024, the total on-chain RWA value, excluding stablecoins, has nearly tripled, reaching $15.2 billion by December 2024, marking an 85% year-over-year growth. By June 2025, this market reached an all-time high of $24.31 billion.

This growth is a significant leap from an estimated $5 million–$10 billion in 2022. In just the first half of 2025, the RWA token market surged by 260% from $8.6 billion. Several factors have contributed to this growth, including higher interest rates that have boosted demand for tokenized yield-bearing assets. Additionally, major issuers have brought institutional products to the market, while DeFi platforms have started integrating tokenized assets into their collateral and liquidity frameworks.

Private credit is the largest segment in the RWA tokenization space as of June 2025, with over $14 billion of the current RWA market, or more than half, composed of tokenized private credit. This indicates a strong institutional appetite for blockchain-native credit markets. Tokenization lowers operational costs, enhances accessibility and distribution, and creates potential for robust secondary liquidity markets. Once confined to institutional desks and illiquid vehicles with seven to ten-year lock-ups, private credit has been transformed through tokenization.

Industry projections suggest that 10%-30% of global assets could be tokenized by 2030-2034. This positions RWAs as a bridge between traditional finance’s $400+ trillion in assets and blockchain, which is over 130 times larger than the current $3 trillion market cap of crypto. This massive growth is driven by hard financial logic, as institutions seek higher yields and faster access to capital, which blockchain and tokenization deliver.

The report concludes that tokenized assets could soon reach critical mass across institutional and consumer markets, not as a new asset class, but as a fundamental upgrade to how existing capital markets operate. The institutional adoption seen today is the result of years of infrastructure development. Financial institutions like BlackRock, JPMorgan, Franklin Templeton, and Apollo have moved beyond experimentation. Governments globally are also starting to recognize blockchain as essential infrastructure for modernizing legacy financial systems and addressing fundamental macroeconomic challenges of the decade.

Catalyzed by a friendlier regulatory environment towards tokenization, RWAs are positioned to proliferate. From BlackRock’s $2.9 billion BUIDL fund to Apollo’s ACRED pioneering private credit tokenization, the early stages of what could be the largest capital migration in financial history are being witnessed. The RWA tokenization market has shown remarkable resilience despite escalating military tensions, with the market growing $464 million over a 12-day period to reach an all-time high as of June 25. This sustained momentum suggests that institutional and retail investors continue to view tokenized real-world assets as a viable investment vehicle, even as traditional markets grapple with geopolitical instability.