Tokenized RWA Market Surpasses $14 Billion

The real-world asset (RWA) market continues to grow, and is now at a new all-time high of $14 billion in total market capitalization.

Tokenized private credit and tokenized Treasuries are the largest sectors within the market, commanding $9.5 billion and $3 billion, respectively, or 89% of the total onchain RWA space.

RWAs aim to onboard traditional asset markets such as Treasuries, bonds, or real estate to decentralized ledgers. The ability to trade and issue RWA assets opens up the door for new DeFi integrations, transparent management of funds, and 24/7 access to assets.

The RWA market size is up 66% since the beginning of 2024, and the rapid growth is indicative of institutional interest. The market relies on the support of traditional entities and their desire to tokenize these assets through facilitating companies such as Securitize.

Private credit commands the lion’s share of the market valuation, with Figure making up 93% of the private credit market. Tokenized private credit allows holders to earn yields by investing in private business loans, resulting in an average weighted yield of 9.9% annual percentage rate (APR).

United States-based institutions are expanding their grasp on the market sector, with Blackrock and Franklin Templeton’s tokenized Treasury funds, BUIDL (BlackRock’s USD Institutional Digital Liquidity Fund Token) and FOBXX (Franklin OnChain U.S. Government Money Fund), accounting for nearly 35% of the entire tokenized treasury market valuation.

Blackrock’s BUIDL just stepped into the stablecoin space by backing Ethena Labs’ new stablecoin product, USDtb. USDtb is fully backed by institutional-grade tokenized U.S. Treasuries and BUIDL.

The collaboration is facilitated through Securitize, a platform responsible for issuing and tokenizing Treasuries through BUIDL.

Tokens issued by RWA startups are climbing, too. Ondo Finance’s ONDO is up 100% in the last 30 days, and 1,000% since its launch in January 2024. Ondo provides instant settlement for tokenized Treasury funds such as BUIDL, allowing clients to gain and reduce exposure to RWA products instantaneously.

The Ondo protocol boasts a total value locked (TVL) of $600 million, making it the second largest RWA protocol, trailing Hashnote and its $900 million market capitalization USYC stablecoin.

Together, Ondo and Hashnote command 51% of the total RWA protocol market share.