RWAs Boom as Layer-1 Blockchains Ignite $18.9T Tokenization Surge
By: crypto news|2025/05/02 19:45:01
0
Share
The market for tokenized real-world assets (RWAs) is estimated to reach $18.9 trillion by 2033. Industry experts believe that this forecast may even be conservative, as stablecoin adoption indicates a much larger market expansion.The rapid growth of tokenized RWAs is also boosting blockchain adoption metrics, as 60% of RWA tokenization value is being driven by Ethereum.Source: rwa.xyzStellar Focuses on Billions in Tokenized RWAsBut Ethereum isn’t the only Layer-1 (L1) blockchain contributing to the growth of tokenized RWAs. Denelle Dixon, executive director of Stellar Development Foundation, told Cryptonews that the Stellar network ranks second, right behind Ethereum, for the most tokenization use cases.“Stellar is the second largest Layer-1 for RWA value after Ethereum, with around $470 million in tokenized treasuries, commodities, and yield-bearing stablecoins on the network,” Dixon stated.Dixon elaborated that in November 2019, Franklin Templeton—one of the world’s largest financial institutions—started planning to build a tokenized money market fund on Stellar.Franklin Templeton has since grown its “OnChain U.S. Government Money Market Fund” (FOBXX) to be the third-largest tokenized money market fund. The fund is available on Ethereum, Coinbase’s Layer-2 Base, Aptos, and Avalanche, but the Stellar network functions as the primary blockchain.According to Dixon, the OnChain U.S. Government Money Fund has about $701.7 million in total asset value, with the majority of $466.5 million being on the Stellar network. “By tokenizing securities, this integration enables institutions to reduce transaction costs from $1 to less than a penny—the $50,000 cost of 50,000 transactions becomes just $120,” Dixon noted.Franklin Templeton explains as follows: If 50,000 transactions are processed in the traditional financial system, the fees alone amount to about $50,000. However, when they utilized Stellar to tokenize RWA (Real-World Assets) and manage operations, the cost of processing 50,000... pic.twitter.com/IuWATLpEpJ— Dao world (@Koreanteacher1) January 4, 2025For an institution like Franklin Templeton that manages $1.7 trillion in assets, such efficiency gains could likely reshape operational economics. Moving forward, Dixon shared that Stellar aspires to power $3 billion in RWA value on-chain within this year alone. She explained that Stellar has set specific goals around new partnerships to ensure this.For example, Dixon pointed out that investment firm Societe Generale-Forge has launched its EUR-backed stablecoin (EURCV) on the Stellar network. In addition, asset management firm Ondo has plans to launch its yield-bearing stablecoin, the United States Dollar Yield (USDY), on Stellar in the coming months. Dixon also mentioned that Etherfuse is bringing “stablebonds” to the Stellar network, which will offer asset-backed products designed to hold value and provide potential returns. Avalanche Plans To Partner With TradFi InstitutionsL1 blockchain Avalanche is also seeking to drive billions into the tokenized RWA market. Morgan Krupetsky, senior director of business development, institutions, and capital markets for Ava Labs, told Cryptonews that Avalanche’s primary mission has been to digitize and tokenize the world’s assets.“Avalanche was purpose-built for this next generation of blockchain-enabled finance,” Krupetsky remarked. “The network has high throughput, sub-second finality, low transaction costs, and customizability, making it an ideal foundation for real-world asset (RWA) tokenization, trade, and transfer at internet scale.”Asset management firm WisdomTree recently expanded its institutional investment platform, WisdomTree Connect, to include 13 tokenized funds across various blockchains, including Avalanche. “We are committed to cultivating a high-quality tokenized asset ecosystem by deepening relationships with large, reputable asset managers and issuers,” Krupetsky remarked. She added that Avalanche plans to expand the diversity and scale of tokenized RWAs on the network. This includes offering stablecoins and other cash equivalents to stocks, bonds, private credit, and other alternatives.“In parallel, we are focused on distribution—both within Avalanche’s crypto-native and DeFi ecosystem, as well as through more traditional capital markets partners and challenger firms,” Krupetsky noted.To put this in perspective, Krupetsky shared that finance company Intain developed a platform that leverages Avalanche architecture to launch an on-chain marketplace for tokenized asset-backed securities (ABS).Known as “IntainMARKETS,” it facilitates asset issuance, investment, administration, and trading. The platform has already administered over $6 billion in tokenized loans.Intain has launched the first institutional Subnet on #AvalancheIntainMARKETS, an on-chain marketplace for asset-backed securities, hopes to facilitate efficient, cost effective, and transparent asset issuance, investment, and administration.See why Intain #ChoseAvalanche https://t.co/nFT6O3M0Hd— Ava Labs (@AvaLabs) January 31, 2023Injective Focuses on RWA Utility in DeFiL1 network Injective is also focused on reshaping finance by making RWA tokenization compliant through a native token factory and permissions module.Eric Chen, co-founder of Injective, told Cryptonews that Injective’s on-chain exchange module lets any issuer create secondary markets for their assets. “Libre, an RWA issuer, recently launched tokenized versions of a BlackRock money market fund and a Laser Digital carry fund,” Chen said. “They’re setting up a BlackRock/Laser Digital market on Injective, where over 15 institutional market makers can quote prices, allowing users to enter and exit these funds seamlessly in a liquid manner.”Chen noted that this unlocks liquidity and democratizes access to products previously only available to a select few.He added that another key use case for Injective is collateralization. This means that Injective allows users to margin Bitcoin (BTC) or Ethereum (ETH) perpetuals with yield-bearing stablecoins.“The goal for us isn’t just about RWA issuance, but rather activating real utility in DeFi, from secondary trading to margin and lending use cases,” Chen commented. “While we haven’t disclosed a target figure, Injective is built to capture a major share of the RWA market, which already exceeds $10 billion in total value locked.” Challenges To ConsiderWhile it’s clear that blockchain networks are driving the growth of RWAs, challenges remain.Although tokenizing an asset is an increasingly commoditized process, Krupetsky explained that creating consistent demand, along with secondary market liquidity, has been a hurdle. “Without active markets or integration into broader DeFi or TradFi workflows, tokenized RWAs risk staying static representations rather than functional assets,” she mentioned. To combat this, Krupetsky believes that the industry should focus on “distribution-first tokenization,” where RWAs are integrated first into DeFi products. Industry experts should then think about how these offerings can fit into more traditional distribution channels.While it’s impressive to see BlackRock and Franklin Templeton enter the sector, Krupetsky further stated that most financial institutions and market participants still operate on legacy systems.“This means there still isn’t seamless integration bridges, onboarding, servicing, and reporting on tokenized assets,” she said. “To combat this, the industry should invest in middleware, token standards, and integration tools that enable compatibility with both DeFi and TradFi systems, while working closely with custodians, fund administrators, and compliance providers to bridge on- and off-chain infrastructure.”Unclear regulatory frameworks across jurisdictions remain a further challenge, but industry experts are confident that 2025 will be a milestone year for tokenized RWAs.Bhaji Illuminati, CEO at RWA platform Centrifuge, told Cryptonews that it’s becoming clear that institutional interest is turning into action. She added that regulatory clarity is slowly improving, while the infrastructure powering tokenization is maturing. “Tokenized RWAs are moving from pilot programs to real allocation strategies, and we expect exponential growth in on-chain volumes as tokenization becomes a core part of asset issuance and trading,” Illuminati said. The post RWAs Boom as Layer-1 Blockchains Ignite $18.9T Tokenization Surge appeared first on Cryptonews.
You may also like
In the era of AI, what is left of Bitcoin?
AI can generate a fake image, create a fake video, and even forge a person's voice. But it cannot make the entire Bitcoin network acknowledge a non-existent transaction out of thin air.
NeoSoul announced plans to integrate with the OKX Agentic Wallet, promoting AI agents' participation in the on-chain economy
After the integration is complete, the AI entity will be able to manage on-chain assets, pay service fees, and perform related on-chain operations.
Raising interest rates to protect STRC and selling coins to maintain credit, this time the strategy has chosen the two most expensive paths
The rebound in BTC prices can make all problems simple.
Why Is Bitcoin Lagging Stocks in 2026? AI Stocks, ETF Outflows, and the Nasdaq Rally Explained
Stocks are hitting record highs while Bitcoin continues to lag. Discover why AI stocks are attracting institutional capital and what it means for crypto traders.
Morning Report | Samsung announces a 265.5 trillion won investment plan, focusing on semiconductor and AI computing power data centers; Vitalik publishes an article detailing the entire technology tree behind the confusion protocol (iO) mainline
Overview of Important Market Events on June 29
What you bought on CEX is really not US stocks: Analyzing the 94% liquidation monopoly and the evaporation of equity under a five-layer pipeline
Peeling back its smooth trading interface to examine the underlying legal relationships and settlement processes, you will find that this is far from a simple "RWA asset revolution," but rather a complex game of interests involving spot pricing, rights ownership, and the monopoly of underlying custo...
In such a crowded cross-border payment arena, where is the next stop for the future?
Only by stepping into the mud can one have the chance to touch gold.
Why Is Bitcoin Down in 2026? What We Can Learn From 2022
Why is Bitcoin down in 2026? Bitcoin has just recorded its worst first half since 2022, with back-to-back quarterly losses, record ETF outflows, and extreme fear. Here's what history says, how 2026 differs from the last bear market, and the three signals traders should wat
The large models in the United States are moving towards closure in the name of security
The government successfully inserted itself as an approver between commercial AI models and their users for the first time.
From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.
Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Overview of Important Market Events on June 25
Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...
Why do cryptocurrency projects always like to change their names?
In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.
Who is footing the bill for the $64 billion accounting frenzy?
Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.
I never expected that the first application of AI x Crypto would be in security auditing
AI has accelerated attack efficiency and also promoted the upgrade of defense systems. The security audit sector is undergoing a transition from a dividend model to a competitive model.
What is your view on Binance's competitive advantages?
When the dividends of rule arbitrage gradually approach zero, can we produce product strength, governance capability, and trust that are commensurate with its scale?
ETH has entered a non-consensus phase, and the turning point is approaching!
This has nothing to do with the Ethereum Foundation or Ethlabs; Ethereum needs to win by solving real problems.
The shift in the cloud of the air: from despising stablecoins a year ago to the high-profile entry of capital today
It can continue to question the cost-effectiveness of stablecoins in the G10 currency corridor, but it cannot ignore the structural opportunities of stablecoins in emerging markets, corporate finance, and on-chain settlements.
In the era of AI, what is left of Bitcoin?
AI can generate a fake image, create a fake video, and even forge a person's voice. But it cannot make the entire Bitcoin network acknowledge a non-existent transaction out of thin air.
NeoSoul announced plans to integrate with the OKX Agentic Wallet, promoting AI agents' participation in the on-chain economy
After the integration is complete, the AI entity will be able to manage on-chain assets, pay service fees, and perform related on-chain operations.
Raising interest rates to protect STRC and selling coins to maintain credit, this time the strategy has chosen the two most expensive paths
The rebound in BTC prices can make all problems simple.
Why Is Bitcoin Lagging Stocks in 2026? AI Stocks, ETF Outflows, and the Nasdaq Rally Explained
Stocks are hitting record highs while Bitcoin continues to lag. Discover why AI stocks are attracting institutional capital and what it means for crypto traders.
Morning Report | Samsung announces a 265.5 trillion won investment plan, focusing on semiconductor and AI computing power data centers; Vitalik publishes an article detailing the entire technology tree behind the confusion protocol (iO) mainline
Overview of Important Market Events on June 29
What you bought on CEX is really not US stocks: Analyzing the 94% liquidation monopoly and the evaporation of equity under a five-layer pipeline
Peeling back its smooth trading interface to examine the underlying legal relationships and settlement processes, you will find that this is far from a simple "RWA asset revolution," but rather a complex game of interests involving spot pricing, rights ownership, and the monopoly of underlying custo...
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com


