What 2025 Holds for Tokenized Real World Assets
Real world assets (RWAs). This is what the crypto natives and institutions are now calling on-chain representations of ownership in real estate, debt, equity, fund LP units, and other traditional assets.
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What can we expect in 2025? This should be the year tokenization solidifies its position and transitions into the "pragmatists" portion of the adoption bell curve. With over $50 billion in RWAs already on-chain, 2025 is predicted to reach at least $500 billion (excluding stablecoins).
Collateral mobility, yield-generating assets backed by other tokens (i.e. stable/yieldcoins and tokenized liquidity products), more complex financial products, and proven streamlined operations will drive the growth of the tokenized RWA market cap. Over time, this will increase investor preferences toward tokenized rather than non-tokenized versions, leading to further adoption and inflows. Real estate alone provides over $30 billion in value, demonstrating savings through tokenizing HELOCs, alternative financing, collateralized loans, on-chain title, funds, and more.
Regulatory clarity remains a top barrier to adoption, but 2025 could bring significant progress. News of Paul Atkins’ appointment as SEC chair, Perianne Boring at the CFTC, and David Sacks as Crypto Czar is increasing the likelihood for a clear U.S. legal framework for digital assets. This would encourage larger institutional participation, raise investor confidence, and spur further innovation in infrastructure for RWAs. The EU, Switzerland, and Singapore have already shown that stronger regulation, even a sandbox, will enhance global momentum even further.
