The tokenized real-world assets market has seen exponential growth, reaching a valuation of $26.5 billion in 2025, with a 70% increase from the previous year. However, a recent study by Tristero Research has raised concerns about the potential risks associated with this rapid expansion, warning of a possible “on-chain subprime crisis” due to what they call the “RWA Liquidity Paradox.”
According to the research, tokenization of real-world assets such as buildings, loans, and commodities can create mismatches between the slow-moving physical assets and the fast-paced blockchain market. This can lead to systemic risks being amplified rather than reduced by wrapping illiquid assets in liquid digital shells.
Despite the structural concerns highlighted by Tristero Research, the market for tokenized real-world assets continues to grow at a staggering pace. Private credit and U.S. Treasuries account for nearly 90% of the tokenized value, with Ethereum holding a 55% market share. Projections for the future of the market remain optimistic, with estimates suggesting that the sector could tap into a $400 trillion traditional finance market.
The regulatory landscape has also seen significant improvements with the passage of the GENIUS Act, providing clarity for stablecoins and tokenization companies. Major players in the industry, such as BlackRock and Figure Technologies, have strategically positioned themselves to capitalize on the growing market.
However, Tristero Research’s analysis warns of potential risks associated with RWA tokenization, drawing parallels to the 2008 financial crisis. The study highlights that tokenization does not alter the fundamental characteristics of assets, and the mismatch between slow-moving physical assets and the fast-paced blockchain market could lead to a repeat of past crises.
The research outlines potential crisis scenarios, including automated liquidations triggered by real-world defaults and oracle updates, as well as risks of custodian hacks or natural disasters compromising legal claims of tokenized assets.
Despite the concerns raised by Tristero Research, the passage of the GENIUS Act has created opportunities for compliant technology companies to thrive in the market. Partnership opportunities between traditional financial institutions and blockchain technology companies have emerged, with stablecoins serving as essential on-chain settlement mechanisms.
While regulatory clarity has improved, challenges persist in integrating on-chain networks with off-chain financial systems. Education and awareness of the benefits of blockchain technology will be crucial for the long-term adoption and success of the tokenized real-world assets market.
In conclusion, while the tokenized real-world assets market shows immense potential for growth, careful consideration of the risks and challenges highlighted by research is necessary to ensure the sustainability and stability of the market in the long run.