Tokenization of real-world assets (RWAs) is only scratching the surface of its potential, according to a new research paper from Animoca Brands.
The Web3 investment firm believes the sector could eventually grow to represent a significant slice of the $400 trillion traditional finance market.
Researchers Andrew Ho and Ming Ruan highlighted that RWAs currently make up just $26 billion of the possible market, a fraction of the opportunity across private credit, government bonds, commodities, equities, and alternative funds. They described the current phase as an early-stage race, with asset managers rushing to build platforms that can manage the “full lifecycle” of tokenized products.
“This is a strategic land grab,” the report noted, arguing that whoever gains control of end-to-end infrastructure will capture the most value as the sector matures.
Industry tracker RWA.xyz shows the tokenized market has reached $26.5 billion, the highest level to date and up 70% since January. That growth has been fueled largely by two categories — private credit and U.S. Treasurys — which together account for nearly 90% of current tokenized value.
Animoca’s researchers said this growth reflects “clear momentum and rising institutional confidence” as more firms experiment with onchain versions of traditional instruments.
Ethereum remains the dominant chain for RWA issuance, hosting 55% of all tokenized value, or roughly $156 billion when including stablecoins. Its advantage grows to 76% once layer-2 solutions like Arbitrum, Polygon, and ZKsync are factored in, thanks to its security and deep DeFi ecosystem.
Still, Animoca expects a multichain reality. Purpose-built blockchains and high-throughput networks are starting to attract tokenization projects, with interoperability likely to determine long-term winners.
The growing focus on RWAs has also benefited Ethereum’s native token, ETH, which recently hit an all-time high above $4,399. Chainlink’s LINK token has also surged as oracles become increasingly vital for connecting traditional financial data with blockchain systems.
Animoca is not just analyzing the market but also participating in it. Earlier this month, the company rolled out its own RWA marketplace, NUVA, as part of its broader push into digital property rights and tokenized finance.
With institutional adoption climbing and the tokenized market already breaking records, Animoca’s research suggests that RWAs could soon move from niche experimentation to one of the most significant growth stories in global finance.
