$400 Trillion TradFi Market Paves Way for Tokenized Real-World Assets
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RWA Tokenization Hits Record High as Institutional Adoption Accelerates
The tokenization of real-world assets (RWAs) is rapidly emerging as one of the most transformative trends in decentralized finance, with researchers highlighting a potential $400 trillion addressable market from traditional finance (TradFi).
According to a recent study by Animoca Brands, the current RWA market stands at $26.5 billion, marking a 70% growth since the start of 2025. Despite this milestone, the sector still represents only a fraction of the global TradFi market, signaling massive growth potential ahead.
“The estimated $400 trillion addressable TradFi market underscores the potential growth runway for RWA tokenization,” said researchers Andrew Ho and Ming Ruan.
What’s Driving the Surge in RWA Tokenization?
The spike in value is largely attributed to institutional confidence and the rise of private credit and U.S. Treasuries, which account for nearly 90% of tokenized market value. Analysts predict that this growing confidence will push RWAs into the mainstream as major asset managers race to build integrated tokenization platforms.
Ethereum currently dominates the space with 55% of RWA market share, which rises to 76% when including Layer-2 networks like Polygon, Arbitrum, and ZKsync Era. Researchers attribute this leadership to Ethereum’s security, liquidity, and robust DeFi ecosystem, although high-performance blockchains are increasingly competing for market share.
“The future of RWAs is multichain, not just Ethereum,” the report noted, emphasizing that interoperability will be a key success factor.
With tokenization gaining traction, crypto assets linked to RWA ecosystems, such as Ether (ETH) and Chainlink (LINK), have seen price surges outperforming the broader market. This trend could accelerate as regulatory clarity and institutional adoption continue to evolve.
As the global financial system moves toward digital representation of traditional assets, RWAs are positioned to become a multi-trillion-dollar industry, bridging the gap between TradFi and blockchain innovation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
