The tokenization of real-world assets (RWAs) is quietly becoming one of the key topics in the crypto world. According to DeFiLlama, the total value locked has increased by 65% in the first six months of the year, reaching $12.83 billion.
Leaders in Real-World Asset Tokenization
Currently, the top protocols involved in real-world asset tokenization include BlackRock BUIDL, Ethena USDt, and Ondo Finance, based on total value locked.
BlackRock BUIDL leads with $2.83 billion across six chains. Following closely is Ethena with $1.46 billion, while Ondo Finance rounds out the top three with $1.39 billion, leveraging its tokenized product OUSG as well as its new short-duration bond offerings.
Franklin Templeton also ranks in the top six with $753.8 million, making it one of the largest traditional finance players to tokenize a money market fund on-chain.
What Are Investors Buying?
The bulk of fund inflows in the RWA market remains concentrated in tokenized Treasury products. According to DeFiLlama data, Ondo Finance accounts for over 35% of the total RWA TVL, largely driven by its tokenized bond product.
However, real estate tokenization is quietly gaining momentum as several platforms utilize fractional ownership models to tokenize property stakes, particularly in emerging markets.
There is also increasing interest in climate-linked assets, including carbon credits, being onboarded via protocols such as Toucan and Flowcarbon.
Future Prospects for the Asset Tokenization Market
Despite the broad range of RWA protocols, user activity is highly concentrated. Dune dashboards indicate that while weekly transaction volumes across RWA platforms remain high, the number of active wallets has barely crossed 300.
This suggests that mostly larger players, including family offices and funds, are stepping into the tokenization of real-world assets. Franklin Templeton confirmed their tokenized fund is of interest to family offices and private banks, seeking on-chain settlement without regulatory compromise.
The future of asset tokenization may be clarified by the Genius Act, a U.S. legislative bill currently under consideration that could provide clearer guidelines for issuing and trading tokenized securities.
The tokenization of real-world assets continues to gain traction and attract institutional investors. The future of this market will depend on the clarity of legal frameworks and ongoing technological advancements.
