Real-world asset (RWA) tokenization has surged past $65 billion in 2025, excluding stablecoins, by digitizing everything from real estate to treasury bonds. This growth stems from blockchain’s ability to fractionalize ownership and automate compliance through smart contracts. Financial institutions now use tokenized RWAs to improve liquidity in traditionally illiquid markets like commercial property.
The trend accelerates institutional crypto adoption, with firms creating hybrid products bridging TradFi and DeFi. However, infrastructure gaps remain – settlement finality, regulatory clarity, and oracle reliability require refinement. Projects focusing on regulatory-compliant tokenization frameworks are attracting significant venture capital.
Looking ahead, analysts predict tokenization could unlock $16 trillion in global illiquid assets by 2030. Success hinges on resolving jurisdictional conflicts and establishing universal standards, particularly for cross-border transactions. The $2.9B Coinbase-Deribit acquisition signals exchanges positioning to dominate this emerging market.