According to a Binance report, the market for tokenized real-world assets (RWAs) has experienced remarkable growth, doubling in value over the past year to reach an impressive $12 billion.
Key categories driving this growth include tokenized US Treasuries, private credit, commodities, stocks, real estate, and other non-US bonds. Furthermore, emerging categories like air rights, carbon credits, and fine art are adding to the diversity of the RWA landscape.
Institutional and TradFi players are significantly contributing to the RWA boom. BlackRock’s BUIDL tokenized Treasury product has emerged as a market leader, with a market cap exceeding US$500 million. Their US spot Bitcoin and Ether ETFs are also dominating the market. Franklin Templeton’s FBOXX is another prominent player in the tokenized Treasury space, while WisdomTree is expanding its reach with tokenized equity products and “Digital Funds.”
However, the anticipated US rate-cutting cycle could impact RWA protocols, particularly those tied to tokenized US Treasuries. Additionally, regulatory uncertainties surrounding RWAs persist and could influence future developments in this space.
