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The tokenized real-world asset (RWA) market has surged to a $24 billion valuation, driven predominantly by private credit and US Treasury debt.
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Institutional investors are increasingly embracing tokenized RWAs for their programmable yields and enhanced liquidity, marking a significant shift in traditional finance.
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According to RedStone’s H1 2025 RWA Market Overview, private credit now represents over half of the tokenized RWA market, highlighting its growing dominance.
Tokenized RWAs reach $24B, led by private credit and Treasury debt, as Ethereum remains the top platform for institutional-grade digital assets.
Private Credit Drives Tokenized RWA Market Growth to $24 Billion
The tokenized real-world asset market has experienced exponential growth, expanding by 380% since 2022 to reach a combined valuation of $24 billion, excluding stablecoins. This surge is largely fueled by private credit, which now accounts for more than half of the market at approximately $14 billion. Private credit, also known as direct lending, offers investors attractive yields ranging from 8% to 12%, significantly outpacing traditional public credit markets.
Tokenization has revolutionized private credit by introducing enhanced settlement speeds, improved liquidity, and fractional ownership, thereby lowering barriers to entry for a broader range of investors. These innovations address long-standing inefficiencies in private credit markets, making them more accessible and efficient. Products such as Apollo’s ACRED fund exemplify the growing institutional appetite for tokenized private credit instruments.
Ethereum Maintains Leadership as the Premier Tokenized RWA Platform
Despite increasing competition from faster blockchains, Ethereum remains the dominant platform for tokenized RWAs, hosting roughly $7.5 billion in tokenized value across 335 products as of mid-2025. This represents 59% of the total market capitalization. Ethereum’s decentralized governance model, while historically limiting institutional adoption, has seen a strategic shift with the launch of Etherealize in January 2025. This initiative aims to enhance institutional participation by improving on-chain governance and compliance frameworks.
Ethereum’s established ecosystem and robust developer community continue to make it the “institutional standard” for tokenized assets, providing a secure and transparent environment favored by asset managers and investors alike.
Emerging Blockchain Platforms Challenge Ethereum’s Dominance in Tokenized RWAs
While Ethereum leads, alternative blockchains are gaining traction in the tokenized RWA space. Solana, recognized for its high throughput and low transaction costs, has emerged as a notable contender, hosting approximately $351 million in tokenized assets by mid-2025. Its growing role in tokenized Treasury products underscores its appeal to institutional players seeking scalability.
Aptos has also made significant strides, managing $349 million in tokenized assets and becoming the first non-Ethereum Virtual Machine (EVM) network to support BlackRock’s BUIDL fund. This milestone highlights Aptos’s potential to attract large-scale institutional investment beyond the Ethereum ecosystem.
Other platforms such as Avalanche and XRP Ledger are carving out niches within the tokenized RWA market, with Avalanche hosting $188 million in tokenized assets, including KKR’s tokenized fund, and XRP Ledger emerging as a “regulated newcomer” with $157 million in tokenized RWAs. These developments indicate a diversifying landscape where multiple blockchain networks contribute to the growth and innovation of tokenized real-world assets.
Conclusion
The tokenized RWA market’s rapid expansion to $24 billion underscores the transformative impact of blockchain technology on traditional finance. Private credit’s dominance within this space reflects investors’ pursuit of higher yields combined with enhanced liquidity and accessibility. Ethereum’s continued leadership, complemented by the rise of alternative blockchains like Solana and Aptos, illustrates a dynamic ecosystem evolving to meet institutional demands. As tokenization matures, it is poised to further democratize access to real-world assets, offering new opportunities for diversified investment portfolios and streamlined asset management.
