The tokenized real-world asset (RWA) market has experienced explosive growth in 2025, reaching over $23 billion from $8.6 billion at the beginning of the year—a staggering 260% increase, according to Binance Research. This surge highlights a fundamental integration of traditional financial assets with blockchain technology.
Tokenized private credit is the primary driver, now accounting for 58% of the total RWA market. It has outpaced tokenized U.S. Treasuries, which hold 34% market share. The appeal of private credit lies in yield potential and rising demand from DeFi-native and institutional investors seeking alternatives to saturated lending protocols.
One notable player is Tradable, a protocol built on ZKSync Era launched in January 2025, which has tokenized over $2 billion in assets, underscoring strong market fit for tokenized debt instruments.
Integration with decentralized finance (DeFi) is gaining momentum, as exemplified by BlackRock's BUIDL fund, the largest tokenized treasury product with $2.9 billion in assets. Its recent DeFi integration via Euler Finance allows direct lending and borrowing against tokenized treasuries. Other players like Centrifuge and Securitize have launched tokenized funds on Solana, improving liquidity and on-chain utility.
The broader crypto market shows bullish signs alongside RWA growth. May 2025 saw a 10.3% crypto market rise, driven partly by a record $5.2 billion inflow into U.S. spot Bitcoin ETFs. Corporate adoption of BTC and diversification into ETH, SOL, and XRP is increasing market maturity. DeFi surged 19%, reflecting a capital rotation into yield-generating sectors like RWAs.
RWA tokenization represents a shift toward scalable blockchain-based finance by unlocking liquidity, enabling fractional ownership, enhancing transparency, and reducing costs compared to traditional asset markets. Challenges remain, including regulatory clarity, legal frameworks, valuation accuracy, custody, interoperability, market education, and smart contract risks. However, regulatory progress and growing institutional involvement suggest a strong growth trajectory for tokenized assets bridging traditional finance and DeFi.