Wall Street’s new obsession: Tokenized real-world assets
Investment giants are pushing for tokenized securities, signaling a major shift in traditional finance
Real-world assets are going digital, and Wall Street is paying attention. While Bitcoin dominates headlines, tokenized assets are quietly building momentum, offering a new way to trade commodities, real estate, and bonds. Experts say we’re just getting started.
RWAs are digital tokens that represent real, physical assets—everything from government bonds and private credit to luxury real estate and rare collectibles. The process of tokenization transforms these traditionally illiquid assets into blockchain-based tokens, making them easier to trade, own, and transfer.
David Schwartz, CTO of Ripple, explains the impact of this shift:
“Tokenization can improve efficiency by eliminating some of the problems with asset transfer and ownership.”
He added that tokenization can solves issues by “using distributed ledgers to track the ownership of assets.”
“If someone can’t explain something in 60 seconds, they probably don’t understand it.” — Albert Einstein or Ripple CTO David Schwartz
— Ripple (@Ripple) May 24, 2024
This #CryptoInOneMinute, @joelkatz explains how tokenization enhances efficiency, proving that real understanding doesn't need a full minute."⏱️ pic.twitter.com/DvMqYuVoNC
Why tokenized RWAs are taking off
One of the most significant benefits of tokenization is fractional ownership—allowing investors to buy small portions of high-value assets. Traditionally, only institutional players or the ultra-wealthy could access investments like corporate debt, prime real estate, or fine art. Now, thanks to blockchain technology, even retail investors can hold a stake in these valuable assets.
Another game-changer is liquidity. Unlike traditional assets, which can take weeks or months to sell, tokenized RWAs can be traded instantly on blockchain platforms. This shift is revolutionizing markets that have historically been slow-moving and restrictive.
RWAs soar to record highs
The real-world asset sector is already seeing explosive growth, reaching an all-time high of $17.1 billion in total value. This milestone came as Bitcoin’s price wobbled, proving that RWAs are carving out their own trajectory in the broader financial system.
According to RWA.xyz, private credit leads the charge, accounting for $11.9 billion of the total market—69% of all tokenized assets. Over the past month alone, the sector’s total value has surged by more than 10%, signaling rising demand.
🚨Breaking: RWAs soar to a record $17B, even as Bitcoin slips under $100K.
— Real World Asset Watchlist (@RWAwatchlist_) February 3, 2025
Tokenized private credit leading the charge. 🔥
Are you paying attention to #RWA tokens? pic.twitter.com/Rg3qntYvRM
Institutional interest is growing fast. Some of the world’s largest consulting firms predict that the RWA market could expand 50-fold by 2030, reaching a staggering $30 trillion.
Edwin Mata, the CEO and co-founder of Brickken, a RWA tokenization platform from Europe, told Cointelegraph:
“With growing institutional interest and clear regulatory progress, tokenization is positioned to become a cornerstone of the modern financial system and one of the leading narratives for blockchain, not just in 2025, but for the years to come.”
Crypto Town Hall, a popular podcast, echoed this sentiment, noting:
“Why? Real-world utility. Institutions aren't just testing the waters anymore - they're restructuring markets around tokenized assets.”
RWA TOKENIZATION HITS $17.1B - REAL UTILITY IS WINNING
— Crypto Town Hall (@Crypto_TownHall) February 4, 2025
Tokenized RWAs just hit ATH levels with $4B added in 3 months - that’s 94% growth YoY.
Why? Real-world utility. Institutions aren’t just testing the waters anymore - they’re restructuring markets around tokenized assets.… pic.twitter.com/gIjc6IKAvf
Wall Street is getting on board
Larry Fink, the CEO of BlackRock, is among the industry leaders who are bullish on tokenization. He shared in a Squawk Box interview:
“I want the SEC to rapidly approve the tokenization of bonds and stocks.”
Global investment management firm VanEck also believes that tokenized securities may exceed $50 billion in value this year. In its Crypto Predictions for 2025, VanEck noted:
“We believe that 2025 will be the year that tokenized securities take off… In the future, we see enormous potential for tokenized securities to launch on public chains. We theorize that there are many incentives for investors to push for tokenized equity or debt securities launched exclusively on-chain.”
Market shifts
While the crypto market was shaken by Bitcoin's decline and Trump's tariff announcements, RWA-focused blockchain projects like Chainlink and Mantra have seen significant surges. Other cryptos like XDC Network and Algorand also had better performance compared to the wider market amidst the rebound.
As RWAs continue to gain momentum, their position in the wider financial system may become difficult to disregard. Bridging the physical and digital world, these assets are bound to become a major force in the blockchain space, potentially unlocking even more opportunities for investors.
