Tokenized Real-World Assets Surge 80% to $18 Billion by 2025

Tokenized real-world assets (RWAs) have emerged as a significant force in the financial sector, transforming traditional markets into a Bitcoin-powered digital economy. By early 2025, the total market value of tokenized RWAs on public blockchains had surged to nearly $18 billion, up from about $10 billion just a year before. This growth has attracted major banks, asset managers, and fintech innovators, marking a shift from a niche experiment to a burgeoning movement.

The tokenization of real-world assets involves converting physical assets such as government bonds, real estate, or loans into digital tokens. This process has made it possible for investors to buy fractions of commercial buildings or slivers of government bonds using decentralized finance (DeFi) platforms. U.S. Treasury securities, which are digital mirror images of government bonds, have become one of the fastest-growing segments, with over $6.9 billion worth of these offerings issued as tokens. These tokens offer investors a yield of over 4% alongside added perks like 24/7 tradability and near-instant settlements.

Private credit, consisting of loans and other debt investments traditionally accessible only to institutions, now accounts for the largest share of the RWA token market, surpassing $13 billion in value. This trend is not driven solely by crypto startups or DeFi enthusiasts; major traditional financial institutions have also become deeply involved. For instance, BlackRock, the world’s largest asset manager, launched a tokenized money market fund called BUIDL, which grew to hundreds of millions in on-chain assets within weeks. By early 2025, BUIDL’s assets under management had ballooned to $2.47 billion, giving it a 42% share of the tokenized Treasury market. Similarly, Franklin Templeton saw over $700 million flow into its own tokenized U.S. government money fund, while JPMorgan and other big banks announced their explorations into tokenized treasury funds.

The trend extends beyond bonds. Alternative asset giants like Apollo Global Management have started tokenizing private credit funds, and firms such as Hamilton Lane and UBS launched tokenized feeder funds for private equity and money markets. This convergence of traditional finance and blockchain technology is reshaping the financial landscape, making it more accessible and efficient.

While much of the RWA tokenization trend has played out on smart contract platforms like Ethereum or on permissioned ledgers set up by banks, Bitcoin has largely been relegated to the background. However, SatLayer is changing that narrative by positioning Bitcoin as the programmable foundation for a new tokenized economy. SatLayer envisions Bitcoin becoming the “gold standard” of a modern digital economy, where BTC’s solid security foundation and monetary properties underwrite the next generation of DeFi and RWA platforms.

SatLayer is a shared security platform that uses Bitcoin as the bedrock collateral to secure other applications. It operates through smart contracts on companion networks, such as Babylon, interfacing directly with Bitcoin. This allows Bitcoin to actively backstop decentralized apps, earning rewards for participants if the services operate honestly. However, if there’s any misbehavior or a breach of rules detected, the system can slash (forfeit) some of that collateral as a penalty. In late 2024, SatLayer integrated with the Sui blockchain, bringing Bitcoin’s security and liquidity into the latter’s fledgling DeFi economy. By early 2025, over $2 billion worth of Bitcoin was set to be plugged in as shared security for various proof-of-stake blockchains, with SatLayer extending that security to the applications running on those chains.

As the lines between traditional markets and crypto markets continue to blur, stocks, bonds, real estate, and commodities will increasingly live atop different blockchain networks. The broader RWA ecosystem will likely expand thanks to support from both legacy institutions and crypto-native innovations, as instruments like debt tokens and real estate investment trusts (REITs) gain traction. This new era promises a more integrated and efficient financial system, driven by the convergence of traditional finance and blockchain technology.