"VCs Bullish on DePINs and RWA Tokenization in 2025"
1min read Crypto venture capital firms (VCs) are expressing strong optimism towards decentralized physical infrastructure networks (DePINs) and real-world asset (RWA) tokenization, as indicated by their investment strategies in 2025. These VCs are focusing on sectors such as decentralized finance (DeFi), gaming, stablecoins, and artificial intelligence, while also prioritizing real-world use cases that can bridge the gap between Web2 and Web3.
HashKey Capital, a Hong Kong-based VC, is particularly bullish on solutions that connect Web2 with Web3, including DePINs and RWA tokenization. DePIN projects, which use blockchains to connect the physical and digital worlds, have a market capitalization of nearly $20 billion, according to DePINscan. In 2024, these projects raised more than $350 million across various funding rounds, demonstrating their potential and attractiveness to investors.
Real-world assets (RWAs) tokenized on the blockchain have reached a cumulative value of $17.1 billion, with private credit and US Treasury debt emerging as the most prominent use cases for financial tokenization. Tokenization protocols like Hamilton Treasury are bridging traditional financial assets with the Bitcoin network, further driving the growth of the RWA market.
The crypto market is maturing, and VCs are becoming more selective in their investment choices. HashKey's fundraising process has been smooth, with investors generally bullish on crypto in the current economic environment, even among traditionally conservative investors like family offices. However, the increasing abundance and diversity of crypto ventures and projects make the selection process more challenging for VCs.
Despite being based in Asia, HashKey acknowledges the influence of global events, such as the election of US President Donald Trump and activity in Silicon Valley, on the crypto market. The Trump administration's stance on crypto regulation may accelerate crypto activity across Asia, further shaping the global crypto landscape.
VCs expect higher deal activity in 2025, with PitchBook predicting crypto funding deals to reach $18 billion this year, up from $13.6 billion in 2024. Galaxy Research attributes this growth to a combination of declining interest rates and increased regulatory clarity in the United States. As the market matures, VCs are shifting their focus towards consumer-facing projects, indicating a growing preference for applications that leverage established infrastructure and 
