Tokenization of real-world assets (RWAs) is a groundbreaking innovation that has the potential to unlock a $400 trillion traditional finance market, according to a recent study conducted by Animoca Brands, a Web3 digital property firm. This research sheds light on the immense opportunities presented by the tokenization of various financial assets, including private credit, U.S. Treasurys, commodities, stocks, alternative funds, and bonds.
In their August report, researchers Andrew Ho and Ming Ruan highlighted the significant growth potential of tokenized RWAs, estimating that the global market for these assets could reach $400 trillion. This figure underscores the vast opportunity for growth in the RWA tokenization space, signaling a bright future for the adoption of onchain financial products.
The current market for tokenized RWAs is valued at $26.5 billion, marking a 70% increase since the beginning of 2025, as reported by industry tracker RWA.xyz. While this figure represents a fraction of the market’s potential size, institutions are increasingly showing confidence in onchain financial products, driving momentum in the sector.
Private credit and U.S. Treasurys are currently dominating the tokenized RWA space, accounting for nearly 90% of the total tokenized value. Ethereum holds a significant market share in the RWA ecosystem, with a 55% share and $156 billion in onchain assets. When layer-2 solutions like Polygon, ZKsync Era, and Arbitrum are included, Ethereum’s market share expands to 76%.
Despite Ethereum’s lead in the RWA ecosystem, purpose-built blockchains are emerging as challengers in the space, reflecting the growing competition and innovation in the industry. Projects like Ether (ETH) and Chainlink (LINK) have shown strong performance in recent weeks, indicating the strategic race to build integrated platforms for RWA tokenization.
Interoperability is identified as a key factor for the long-term success of RWA tokenization, as activity unfolds across both public and private blockchains. Animoca’s recent launch of its RWA marketplace, NUVA, further underscores the company’s commitment to capturing a share of the sector’s rapid growth.
Looking ahead, the market for tokenized RWAs could reach $16 trillion by 2030, according to the 2025 Skynet RWA Security Report. This growth is driven by increasing institutional interest in tokenization for yield and liquidity management, with major banks, asset managers, and blockchain-native firms exploring the potential of RWA tokenization.
Despite the promising outlook, the industry faces challenges such as thin secondary market liquidity, inconsistent legal treatment across jurisdictions, and cybersecurity risks. To address these challenges, regulated custodians and robust security infrastructure are recommended to ensure the safe and secure tokenization of real-world assets.
In conclusion, the tokenization of real-world assets presents a transformative opportunity for the traditional finance market, with the potential to unlock trillions of dollars in value. As the industry continues to evolve and innovate, interoperability, regulatory frameworks, and security measures will play a crucial role in shaping the future of RWA tokenization.