The market for tokenized real-world assets (RWAs) has doubled in value over the past year, rising to $12 billion, according to a research report published by cryptocurrency exchange Binance.
Key segments driving this growth include tokenized U.S. Treasury bonds, private credit, commodities, equities, real estate, and non-U.S. bonds. Emerging categories such as aviation rights, carbon credits, and fine art are also gaining traction.
According to the report, corporate and traditional finance (TradFi) participation has been a major factor behind the recent expansion of the RWA space. BlackRock leads the category with its BUIDL tokenized treasury bond product, which has a market cap of over $500 million. In addition, BlackRock’s US spot Bitcoin and Ethereum ETFs are the largest of their kind. Franklin Templeton’s FBOXX is the second-largest tokenized treasury product, while WisdomTree has expanded further into tokenized equity and digital fund products.
From a macroeconomic perspective, the US is set to embark on a historic rate-cutting cycle, which could impact many RWA protocols, particularly those focused on tokenized US Treasury bonds. Additionally, concerns regarding the regulatory framework for RWAs continue to be a topic of discussion among industry participants.
*This is not investment advice.