The tokenized real-world asset (RWA) market has experienced significant growth, with its value doubling to reach $12 billion in the past year, as reported by cryptocurrency exchange Binance.
This expansion is largely driven by key segments such as tokenized U.S. Treasury bonds, private credit, commodities, equities, real estate, and non-U.S. bonds.
Additionally, new areas like aviation rights, carbon credits, and fine art are beginning to gain popularity.
Corporate involvement has been crucial to this growth. BlackRock is a leading player with its BUIDL tokenized treasury bond offering, valued at over $500 million, and it also holds major positions in U.S. spot Bitcoin and Ethereum ETFs.
Franklin Templeton’s FBOXX stands as the second-largest tokenized treasury product, while WisdomTree has made strides in tokenized equity and digital fund products.
Looking ahead, the anticipated U.S. rate-cutting cycle may affect various RWA protocols, especially those tied to U.S. Treasury bonds. Additionally, ongoing debates about the regulatory landscape for RWAs are shaping industry discussions.
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