Tokenization of Real-World Assets Surges 65% to $12.83 Billion

The tokenization of real-world assets (RWAs) has emerged as a significant trend in the cryptocurrency space, with the total value locked (TVL) across major protocols reaching $12.83 billion as of July 3. This represents a 65% increase from the start of the year, when the TVL was $7.75 billion. This surge indicates a growing interest and investment in tokenized real-world assets.

The leading protocols in this space include BlackRock BUIDL, Ethena USDt, and Ondo Finance, which are at the forefront based on their total value locked. BlackRock’s BUIDL protocol leads with $2.83 billion spread across six chains, followed by Ethena’s synthetic cash protocol with $1.46 billion, and Ondo Finance with $1.39 billion. Ondo Finance's success is largely driven by its tokenized U.S. Treasury product OUSG and newer short-duration bond offerings. Franklin Templeton also ranks prominently with $753.8 million, making it one of the largest traditional finance players to tokenize a money market fund on-chain through its Benji platform.

Other notable names in the RWA tokenization space include Paxos Gold and Tether Gold, which dominate tokenized gold. OpenEden, Centrifuge, and Maple Finance are also significant players, focusing on private credit and DeFi-native fixed income. Protocols like Superstate, Goldfinch, and Anemoy Capital are seeing gradual institutional adoption, particularly from climate and emerging market-focused allocators.

The bulk of the inflows into RWA remains in tokenized Treasury products, with Ondo Finance accounting for over 35% of the total RWA TVL. However, real estate tokenization is also gaining traction, with several platforms using fractional ownership models to tokenize property stakes, often in emerging markets. Additionally, there is rising activity around climate-linked assets, including carbon credits, which are being onboarded via protocols such as Toucan and Flowcarbon. This trend highlights the growing interest in regulatory-compliant yield products on-chain, which institutional traders seem to be betting on.

The growth in the RWA market is driven by a concentrated user base, with high transaction volumes but a relatively low number of active wallets. This pattern suggests that bigger players, such as family offices, compliance-friendly funds, or TradFi-backed entities, are quietly stepping into the space. Franklin Templeton has confirmed that their tokenized fund is being eyed by family offices and private banks seeking on-chain settlement without regulatory compromise.

Looking ahead, the Genius Act, a U.S. legislative bill currently being considered by Congress, could bring greater clarity to the issuance and trading of tokenized securities. If passed, it may allow platforms like Ondo and Franklin Templeton to directly issue to retail without navigating through state-level regulations. Ethereum continues to serve as the dominant base layer for RWAs, with most protocols settling on it for legal clarity and tooling maturity. For now, smart money continues to flow into tokenized RWAs, but the momentum may depend on the clarity of legal frameworks through 2025.