The tokenized real-world assets (RWA) market has reached a staggering valuation of $24 billion, with private credit emerging as the leading asset class and Ethereum continuing to dominate the underlying infrastructure landscape.
According to the RedStone 2025 Mid-Year RWA Market Overview—a comprehensive report co-authored by DeFi protocol Gauntlet and data platform RWA.xyz—tokenized RWAs have evolved from a niche blockchain experiment into a core institutional use case. This transformation is being driven by demand for programmable yield, faster settlement, and broader access to traditionally illiquid markets.
Excluding stablecoins, the RWA market has grown by an impressive 380% since 2022, now representing a significant segment of decentralized finance activity. While much of the public conversation has centered around tokenized U.S. Treasury bonds—popularized by firms like BlackRock and Franklin Templeton—the data reveals a different leader in terms of total value locked.
Private Credit Takes the Lead in Tokenized Assets
Private credit, also known as direct lending in institutional circles, now accounts for over half of the entire RWA market, with $14 billion in tokenized value. This positions it as the most dominant asset class within the ecosystem.
Investors are drawn to private credit due to its historically higher yields compared to public markets. The RedStone report highlights that tokenized private credit products currently offer annual returns ranging from 8% to 12%, making them highly attractive in today’s high-interest-rate environment.
One notable example cited in the report is Apollo’s ACRED fund, which has successfully leveraged blockchain technology to bring institutional-grade private credit opportunities to a broader investor base. These tokenized funds allow for fractional ownership, enabling smaller investors to participate in deals previously reserved for large institutions.
As FS Investments noted, private credit has long provided a “yield premium” over public debt markets. Now, tokenization is enhancing this asset class by introducing faster settlement times, improved liquidity, lower entry barriers, and 24/7 market access—features that were historically absent in traditional private credit markets.
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This shift isn’t just theoretical. Real-world adoption is accelerating, with more asset managers launching on-chain versions of their funds. The ability to automate compliance, enable real-time auditing, and streamline investor onboarding through smart contracts is proving transformative.
Ethereum Remains the Institutional Standard for RWA
Despite increasing competition from faster and more scalable blockchains, Ethereum remains the dominant platform for tokenizing real-world assets. As of mid-2025, it hosts approximately $7.5 billion in tokenized assets across 335 distinct products, capturing 59% of the total market share.
The report refers to Ethereum as the de facto “institutional standard” for RWA deployment—a testament to its robust security model, mature developer ecosystem, and widespread regulatory familiarity among financial institutions.
A key turning point came in January 2025 with the launch of Etherealize, a strategic initiative by the Ethereum Foundation aimed at boosting institutional adoption of on-chain financial products. While Ethereum’s decentralized governance had previously been seen as a barrier to enterprise integration, Etherealize introduced new compliance tooling, enterprise-grade support channels, and streamlined KYC/AML frameworks—making it easier than ever for asset managers to go live on Ethereum.
“Ethereum’s combination of decentralization, security, and ecosystem maturity makes it the preferred choice for institutions entering Web3,” the report states.
However, Ethereum is not without challengers.
Solana, Aptos, and Avalanche Rise as Key RWA Platforms
While Ethereum leads in overall volume, alternative blockchains are carving out strong positions in specific niches.
Solana: The High-Performance Contender
Solana is rapidly gaining traction as a high-performance challenger, particularly in the tokenized U.S. Treasury space. Known for its lightning-fast transaction speeds and low fees, Solana hosted around $351 million in tokenized assets by June 2025. Its efficiency makes it ideal for high-frequency trading and real-time yield distribution—key requirements for government bond tokenization.
Aptos: Breaking New Ground Beyond EVM
Aptos has also seen significant RWA growth, with $349 million in tokenized assets under management. Notably, it became the first non-EVM network to host BlackRock’s BUIDL fund—a milestone that signals growing confidence in non-Ethereum-compatible ecosystems.
This cross-chain expansion demonstrates that while Ethereum dominates, institutional players are increasingly adopting a multi-chain strategy to optimize performance and cost.
Avalanche and XRP Ledger: Niche Players with Regulatory Edge
Avalanche currently supports $188 million in tokenized RWAs, including KKR’s pioneering tokenized private equity fund. Its subnet architecture allows for customized regulatory environments, appealing to firms requiring strict compliance controls.
Meanwhile, the XRP Ledger is emerging as a “regulated newcomer,” hosting $157 million in tokenized assets. Its focus on compliance-by-design and interoperability with traditional financial systems positions it well for institutions navigating complex regulatory landscapes.
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FAQ: Understanding the Tokenized RWA Landscape
What are tokenized real-world assets (RWAs)?
Tokenized RWAs are physical or financial assets—such as real estate, bonds, or private loans—that are represented as digital tokens on a blockchain. This enables fractional ownership, automated payouts, and 24/7 trading.
Why is private credit so popular in the RWA space?
Private credit offers higher yields (typically 8–12%) than public markets and benefits greatly from blockchain improvements like faster settlement and reduced administrative costs. Tokenization opens this exclusive asset class to more investors.
Is Ethereum losing ground to other blockchains?
While Ethereum faces competition from faster chains like Solana and Aptos, it still holds nearly 60% of the RWA market. Its security, decentralization, and institutional trust keep it at the forefront despite scalability challenges.
How do tokenized Treasury bonds work?
U.S. Treasury bonds can be tokenized via regulated custodians who hold the underlying securities. Investors buy tokens representing ownership and receive automated interest payments through smart contracts.
Are tokenized RWAs safe for retail investors?
Safety depends on transparency, custody solutions, and regulatory compliance. Platforms using audited smart contracts and reputable custodians offer greater protection. Always conduct due diligence before investing.
What drives future growth in the RWA market?
Key drivers include demand for yield, improved liquidity, regulatory clarity, and integration with DeFi protocols. As more institutions tokenize their offerings, accessibility and innovation will continue to expand.
The convergence of traditional finance and decentralized technology is no longer speculative—it’s happening now.
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Final Outlook: A Multi-Chain Future Powered by Real-World Value
The $24 billion RWA market reflects a fundamental shift: blockchain is no longer just about cryptocurrencies. It's becoming a foundational layer for reimagining how we own, trade, and earn from real-world assets.
Private credit leads the charge due to its compelling yields and structural inefficiencies that blockchain can solve. Meanwhile, Ethereum maintains its leadership through trust and ecosystem strength—even as Solana, Aptos, and others push forward with speed and specialization.
As more asset managers tokenize funds and regulators provide clearer frameworks, expect continued expansion across both asset types and blockchain platforms. The future of finance isn't just digital—it's programmable, accessible, and rooted in real economic value.
Core Keywords: tokenized real-world assets, private credit, Ethereum, RWA market, blockchain finance, DeFi, asset tokenization, institutional adoption