Institutional adoption fuels record growth in tokenized assets
Real-world asset (RWA) tokens surged 11% this week, pushing total onchain value to a new peak of $29 billion. The milestone reflects growing institutional adoption of blockchain-based financial products, with tokenization rapidly reshaping traditional markets.
Market momentum builds
According to RWA.xyz data, the onchain value of tokenized assets has almost doubled since the beginning of 2025. More than half of this value comes from tokenized private credit, while U.S. Treasuries account for roughly one-quarter. The remainder is spread across commodities, equities, bonds, and alternative funds.
When stablecoins are included, total tokenized value reaches a record $307 billion, underscoring the accelerating shift of capital into blockchain networks. Ethereum and its layer-2 ecosystems continue to dominate the landscape, hosting over three-quarters of all RWA activity.
Tokenization as a financial transformation
Industry analysts say tokenization is no longer a niche experiment but a cornerstone of financial innovation. “Tokenization is now being pushed by the U.S. government in an effort to modernize markets,” said crypto investor Ryan Sean Adams. “Wall Street and fintech firms have strong incentives to accelerate this transition.”
Protocols leading the space include Chainlink, which provides blockchain oracle infrastructure, Avalanche, a high-speed layer-1 network, and Ondo Finance, an institutional-grade RWA DeFi platform. Ondo saw its token climb nearly 9% in a single day as the market rally unfolded.
BlackRock signals next wave
Adding to the momentum, BlackRock is reportedly weighing plans to tokenize its exchange-traded funds (ETFs). The move follows the success of its USD Institutional Digital Liquidity Fund (BUIDL), launched on Ethereum in 2024, which has grown to $2.2 billion in assets under management.
BlackRock CEO Larry Fink has repeatedly emphasized the transformative potential of blockchain. He previously noted that “every financial asset can be tokenized,” describing the trend as a way to “democratize finance” by making capital markets more efficient and accessible.
With RWA tokens climbing to $29 billion in value and institutional players deepening their involvement, tokenization is poised to become a defining trend of global finance. The surge highlights how traditional and decentralized finance are converging in ways that could permanently reshape capital markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.