Opinion by: Andrey Kuznetsov, co-founder of Haqq Network
Real-world asset (RWA) tokenization was one of the top crypto narratives in 2024. Almost every tokenized asset class saw remarkable growth throughout the year, with tokenized Treasurys surging by 179% and private credit by 40%.
The overall market cap of these assets also increased by 32%, growing even faster than the overall crypto market. Global investment giant VanEck forecasts that the RWA market will surpass $50 billion by the end of this year. So, there’s a clear momentum behind this emerging trend.
Wall Street giants double down on tokenization
Beyond financial growth, one key development has been the broader adoption of tokenization across traditional financial institutions. Financial leaders like JPMorgan, UBS, BlackRock, Citi and Goldman Sachs are moving beyond theoretical interest to full-scale implementation of blockchain technology.
Their efforts are fundamentally changing how real-world assets are managed, traded, accessed and used across different industries and regions. Tokenized Treasurys alone saw explosive growth in 2024, rising from $769 million at the start of the year to over $2.2 billion by September.
Just three years ago, the crypto industry had tokenized less than $2 billion worth of RWAs. But today, the market has reached $16.82B. A January report from Fidelity reinforces this outlook, calling tokenization the killer app for 2025.
Emerging markets stand to gain the most, where tokenization gives businesses and everyday investors access to liquidity and opportunities that were once out of reach.
Tokenization is a winning bet
Another reason institutions are betting on tokenization is its ability to bring transparency to opaque markets. Asset-backed securities (ABSs) are a prime example. Tokenized ABSs streamline the securitization process by creating a clear, immutable record of ownership and transactions.
Recent: $150M money market funds added to Arbitrum’s RWA ecosystem
Transparency reduces risks and enhances trust— qualities traditional financial markets often struggle to deliver. For fund managers, tokenization means less administrative burden and greater accessibility for investors.
Franklin Templeton’s Franklin OnChain US Government Money Fund (FOBXX) uses blockchain to issue tokenized shares. This approach simplifies transactions and makes it easier for investors to participate, especially those previously excluded by high barriers to entry.
Key drivers of RWA tokenization
Blockchain technology has matured immensely over the last few years. Early skepticism around scalability and security has given way to confidence as proven solutions emerge. JPMorgan’s blockchain platform, Onyx, is one example of enterprise-grade technology that is ready for mass adoption. Similarly, platforms like Securitize provide the infrastructure to tokenize and trade RWAs efficiently and securely.
At the same time, institutional demand for liquidity is growing. Liquidity products like the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin Templeton’s Benji are gaining popularity because they solve real industry-based funding problems.
These tokenized funds offer the same functionality as traditional money market funds while adding the benefits of blockchain — such as reduced settlement times and easier integration with decentralized finance platforms.
Regulation is no longer a hurdle
Governments and regulators are beginning to recognize the potential of tokenization. Instead of outright bans, we see thoughtful frameworks that encourage innovation while protecting investors.
There’s already a potential shift focused on driving blockchain and digital asset growth in the US, while the United Arab Emirates has become a leading global market for accelerating blockchain and tokenization projects. So, there’s an evident global shift in how regulators view tokenization as a practical solution to asset management.
Economic uncertainty is another factor. In volatile markets, tokenization provides a hedge. Assets onchain are more straightforward to trade, reallocate and manage — a valuable feature in unpredictable economic conditions. The ability to quickly rebalance tokenized portfolios is a capability that traditional financial systems can’t match.
Most importantly, the demand for democratization in finance is growing. Tokenization lowers barriers to entry, allowing smaller investors to access opportunities previously reserved for institutions. Greater participation leads to deeper liquidity and more resilient financial ecosystems.
By the end of 2024, the total value of tokenized assets was nearly $13.9 billion, a 67% increase from $8.3 billion at the start of the year. Industry projections, however, say we are not near the peak market potential, as the industry can reach between $4 trillion and $30 trillion by 2030. That’s a potential 50-fold increase in just a few years.
Institutions are already reaping the benefits. BlackRock’s BUIDL fund is a case study of how tokenization can achieve scale quickly. We should see tokenization expand into more complicated asset classes in the future. Private credit, for example, is a risky, high-reward industry waiting for more developments in 2025.
Tokenization can provide this market with much-needed transparency and efficiency, making it more accessible and less likely to be misused. In short, tokenization is fundamentally changing financial markets. Wall Street titans are sensing the signs and preparing to lead this change.
Opinion by: Andrey Kuznetsov, co-founder of Haqq Network
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
