The Rise of Tokenized Real-World Assets in the Crypto Market
A recent report by RedStone has shed light on the significant growth of tokenized real-world assets (RWAs) in the crypto market. According to the report, RWAs have become one of the fastest-growing categories in the industry, reaching an estimated value of over $24 billion in June 2025. This marks a substantial increase from $5 to $10 billion in 2022 and indicates the growing popularity and adoption of RWAs.
The primary driver behind this growth, as highlighted by Marcin Kaźmierczak, Co-founder of RedStone, is private credit. Private credit refers to loans issued outside the traditional banking system, often directly to private companies. This form of lending was traditionally illiquid, with long lockup periods, but offered high yields of 8% to 12%. However, with the advent of RWAs, private credit loans have become more liquid and flexible, allowing traders to sell them and realize profits more quickly.
Furthermore, RWAs have enabled the packaging of private credit loans into institutional-grade funds, making them more accessible to a wider range of investors. For example, Apollo’s ACRED fund has leveraged RWAs to offer institutional investors exposure to private credit assets in a more efficient and innovative way.
One of the key advantages of RWAs is their programmability and composability. These assets can be embedded with specific strategies, such as automatic interest distribution and triggered liquidations, enhancing their functionality and utility. Additionally, tokenized assets can be integrated across different protocols, including as collateral, further expanding their use cases and potential applications.
Overall, the growth of RWAs signifies a maturation of blockchain technology for real-world applications. Non-crypto-native institutions are increasingly leveraging RWAs to enhance their operations and explore new opportunities in the evolving digital landscape. As RWAs continue to gain traction and prominence in the crypto market, they are expected to play a crucial role in shaping the future of on-chain finance and driving further innovation in the industry.