Recent data shows significant growth in the market for real-world asset (RWA) tokenization. This week, activities in this area led to an 11% increase in market capitalization.
Market Surge in RWA Tokenization
The RWA tokenization market surged to a new record, with total capitalization nearly reaching $76 billion, according to CoinMarketCap. Key players in the tokenization infrastructure, such as Chainlink, Avalanche, and Ondo Finance, also showed significant increases, particularly Ondo Finance, which rose by 9% in a single day.
Dominance of Stablecoins and Ethereum
When including stablecoins, the total value of tokenized assets hit a record $307 billion. Notably, more than three-quarters of this amount is tokenized on Ethereum and its layer-2 networks. The growing adoption of tokenization protocols is seen as a strategic move by governments and institutions to modernize traditional finance.
BlackRock's Plans for ETF Tokenization
Global asset manager BlackRock is exploring ways to tokenize its ETFs on the blockchain. This follows the successful launch of the USD Institutional Digital Liquidity Fund (BUIDL) in 2024 on Ethereum. BlackRock CEO Larry Fink emphasizes that 'every financial asset can be tokenized,' which could lead to the democratization of finance.
The real-world asset tokenization sector shows significant growth and interest from major financial institutions like BlackRock. Further developments in this area are expected in the future.
