Cryptos tied to real-world asset (RWA) tokenization jumped 11% this week as the sector’s total tokenized value hit a fresh peak.
According to CoinMarketCap, the RWA token market cap climbed from roughly $67 billion to just under $76 billion over the past seven days, marking a new all-time high on Friday.
The category covers projects and protocols centered on tokenization, including blockchain oracle provider Chainlink, fast layer-1 network Avalanche, and institutional-focused RWA DeFi platform Ondo Finance, which gained 9% in the past 24 hours.
RWA On-Chain Value Hits Record High
The recent rally in RWA tokens comes alongside a surge in the value of tokenized assets on-chain, which surpassed $29 billion for the first time this week, according to RWA.xyz.
On-chain value has nearly doubled since the start of the year as more financial institutions roll out tokenized products. Over half of this value is tied to tokenized private credit, about a quarter to tokenized U.S. Treasurys, with the rest spread across commodities, alternative funds, equities, and bonds.
Including stablecoins, the total tokenized value on-chain has reached a record $307 billion.
More than 75% of this value is tokenized on Ethereum and its layer-2 networks.
“Tokenization is now being pushed by the U.S. government in an effort to modernize U.S. markets,” crypto investor Ryan Sean Adams said Thursday on X, noting that Wall Street and fintech players are increasingly incentivized to drive adoption.
BlackRock Eyes Tokenized ETFs
The world’s largest asset manager, BlackRock, is reportedly exploring blockchain-based tokenization for its exchange-traded funds (ETFs).
This comes after the firm’s successful launch of the USD Institutional Digital Liquidity Fund (BUIDL) on Ethereum in 2024, which has since grown to roughly $2.2 billion in assets under management.
BlackRock CEO Larry Fink has previously said that every financial asset could eventually be tokenized, emphasizing that the shift will help “democratize finance.”
