The year 2025 is already proving to be a period of significant acceleration for Real World Asset (RWA) tokenization markets.

We’re seeing established players like MANTRA expand their reach into new areas, and exciting newcomers such as Fraction and Adda Labs—founded by a former executive from JP Morgan—are also making notable strides.

With the shared goal of bringing tangible assets into the digital realm, both well-known companies and innovative startups are actively shaping the evolving Web3 landscape.

Adding weight to this momentum, a recent report from Brickken forecasts a potentially massive expansion, suggesting that the market capitalization of tokenized assets could soar to between $30 trillion and $50 trillion by 2030. It

Key Assets Gaining Traction in the RWA Market

At the core of tokenization is blockchain technology. Its decentralized, secure, and unchangeable record-keeping system is fundamental in boosting transparency and minimizing fraudulent activities.

While practically any asset could be tokenized, the Brickken report spotlights five key categories that are currently attracting significant attention:

1. Debt – Tokenizing bonds is improving how efficiently they are handled, making them more accessible and easier to trade.
2. Equity – By tokenizing company shares, businesses can tap into a wider pool of potential investors.
3. Asset-Backed Securities (ABS) – Tokenizing loans and receivables is increasing openness and bringing down associated costs.
4. Funds – Investment funds are issuing tokens to represent shares, streamlining operations and lowering administrative expenses.
5. Real Estate – Tokenization is making real estate more liquid, enabling fractional ownership and speeding up transaction processes.

As of December 2024, the total value of tokenized assets across these categories is already over $50 billion, and further growth is anticipated throughout 2025.

Technology Driving Tokenization

Several key technologies are propelling tokenization forward. Blockchain and Distributed Ledger Technology (DLT) provide a secure and permanent transaction record. Smart Contracts automate transaction execution and ensure adherence to regulations. Oracles bridge the gap by bringing real-world data onto the blockchain for up-to-date information. Finally, Cross Chain Interoperability is becoming crucial, allowing tokenized assets to move seamlessly between different blockchains, thus boosting market liquidity.

Privacy-Preserving Technologies, particularly zero-knowledge proofs (ZKPs), are also playing a vital role by ensuring compliance with data protection laws.

The Key Trends of Tokenization for 2025 and Beyond

The report indicates that the tokenization of real-world assets (RWA) is poised for substantial growth in 2025, driven by increasing adoption of blockchain-based financial products by institutions.

Major financial institutions like BlackRock, JPMorgan, and HSBC are actively expanding their offerings in the tokenized space, especially in areas like bonds, private credit, and money market funds.

Looking ahead, tokenization is expected to significantly improve market conditions by enhancing liquidity, cutting costs, and increasing overall efficiency. This will make traditionally less liquid assets, such as real estate, private equity, and commodities, more accessible to a broader range of investors. The growing popularity of tokenized money market funds, exemplified by BlackRock’s BUIDL and Franklin Templeton’s BENJI, reflects investor demand for yield-generating products built on blockchain technology.

The evolution of regulatory frameworks is also a key factor. Clearer guidelines from financial regulators in the US, Europe, and Asia are building institutional confidence in tokenized securities. The report highlights that progress in cross-chain interoperability, like Chainlink’s CCIP, will further facilitate smooth asset transfers across different blockchains, which in turn will improve liquidity.

Furthermore, the integration of AI is expected to optimize the management of tokenized assets through the power of predictive analytics and automated compliance processes. As these advancements take hold, the market is expected to move beyond initial pilot programs towards widespread, large-scale adoption, with projections indicating that tokenized assets will exceed a staggering $30 trillion by 2030.

Future Growth Expected

Tokenization is truly revolutionizing financial markets by making them more liquid, efficient, and accessible to everyone. The report concludes that the next five years will be pivotal in determining how deeply blockchain technology becomes integrated into mainstream finance. It also predicts that institutions that are proactive in embracing tokenization early on are likely to gain a significant competitive advantage in the rapidly changing digital asset landscape.