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Blockchain Emerges as Core Infrastructure as RWA Market Reaches $24 Billion

Blockchain Emerges as Core Infrastructure as RWA Market Reaches $24 Billion

Bitget-RWA2025/12/02 06:50
By:Bitget-RWA

RWA Tokenization Market Experiences Explosive Growth

The market for tokenizing real-world assets (RWA) has experienced remarkable expansion, growing nearly five times over the past three years to reach a valuation of $24 billion. This surge, highlighted in a recent report by RedStone, Gauntlet, and RWA.xyz, marks a significant transformation in the financial sector as blockchain technology becomes increasingly utilized to digitize physical assets such as real estate, commodities, and infrastructure.

According to the report, institutional involvement has progressed beyond initial pilot programs, with 2024 and 2025 expected to usher in large-scale, practical implementations. This trend signals a broader shift in how traditional finance is embracing digital innovation.

Future Projections and Market Potential

Standard Chartered forecasts that the RWA sector could balloon to $30 trillion by 2034, reflecting the ongoing evolution of financial technology. The report suggests that tokenization may play a role similar to that of stablecoins in reinforcing the global dominance of the U.S. dollar, by making value transfers more efficient and cost-effective. This comparison is underscored by the rapid rise of stablecoins, which now boast a market capitalization exceeding $100 billion.

RWA Tokenization Growth

Institutional Demand Fuels Adoption

The momentum behind RWA tokenization is largely driven by institutions seeking greater efficiency and liquidity. By digitizing asset management processes that were once reliant on cumbersome paperwork, tokenization streamlines operations and opens up previously inaccessible markets. For example, real estate and infrastructure assets can now be divided into smaller units and traded on blockchain platforms, making them available to a wider range of investors. This innovation has attracted significant interest from major asset managers and custodians, who are now incorporating blockchain solutions into their business models.

Parallels with Other Financial Innovations

The report draws comparisons between RWA tokenization and other advancements in the financial sector, such as buy-now-pay-later (BNPL) services. On Black Friday 2025, consumers spent $747.5 million online using BNPL platforms, illustrating the growing demand for flexible, digital payment options. While the mechanisms differ, both RWA tokenization and BNPL reflect a shift toward more adaptable and technology-driven financial products for both consumers and institutions.

Regulatory Challenges and the Road Ahead

Despite its rapid expansion, the RWA market still faces regulatory uncertainties, especially when it comes to cross-border transactions involving digital assets. Nonetheless, the report emphasizes that the swift growth of this sector demonstrates increasing confidence in blockchain as a foundational technology for the financial industry. As leading banks and technology companies continue to invest in RWA platforms, the industry is set to transform capital markets by enabling quicker settlements and reducing dependence on outdated systems.

The Next Phase: Integrating AI and DeFi

Looking to the future, the integration of RWA tokenization with cutting-edge technologies like artificial intelligence and decentralized finance (DeFi) is expected to further accelerate its adoption. AI-powered analytics could enhance the management of tokenized asset portfolios, while DeFi protocols may introduce innovative ways to provide liquidity. These advancements are positioning RWA tokenization as a key component in the evolution of the global financial landscape, effectively connecting traditional and digital asset markets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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