RWA Token Surge
This week, cryptocurrencies associated with the real-world asset (RWA) tokenization sector saw a significant increase of 11%, as the overall value of tokenized RWAs reached a new milestone.
In the last seven days, the market capitalization for RWA tokens soared from approximately $67 billion to nearly $76 billion on Friday, marking an all-time high, according to CoinMarketCap.
Key Players
This segment of cryptocurrencies is closely tied to protocols and initiatives emphasizing tokenization. Notable examples include the blockchain oracle provider Chainlink (LINK), the high-speed layer-1 chain Avalanche (AVAX), and the institutional RWA DeFi platform Ondo Finance (ONDO), which experienced a 9% increase in value on that day.
Onchain Asset Growth
The rise in RWA tokens aligns with a notable upsurge in the total value of tokenized assets onchain, which surpassed $29 billion for the first time this week, according to RWA.xyz.
Since the start of this year, the total onchain value has nearly doubled as more financial institutions begin to offer products onchain.
Composition of Tokenized Assets
Over half of the total value comprises tokenized private credit, with approximately a quarter represented by tokenized US treasuries. The remaining value consists of tokenized commodities, alternative funds, equities, and bonds.
When stablecoins are taken into account, the total value reaches a record $307 billion.
More than 75% of this total is tokenized on Ethereum and layer-2 networks.
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Government Support and Industry Moves
Tokenization is “now being pushed by the US government in an effort to modernize US markets,” crypto investor Ryan Sean Adams stated on Thursday via X, noting that Wall Street and fintech companies are now motivated to facilitate this transformation.
In a related development, BlackRock, the largest asset manager globally, is investigating the possibility of tokenizing its exchange-traded funds (ETFs) utilizing blockchain technology, according to recent reports.
This initiative follows BlackRock’s successful introduction of the USD Institutional Digital Liquidity Fund (BUIDL), a tokenized money-market fund initiated on Ethereum in 2024, which has grown to approximately $2.2 billion in assets under management.
BlackRock CEO Larry Fink has previously expressed that every financial asset has the potential to be tokenized, asserting that it will “democratize finance.”
