RWAs Boom as Layer-1 Blockchains Ignite $18.9T Tokenization Surge
By: crypto news|2025/05/03 03:45:01
0
Share
The market for tokenized real-world assets (RWAs) is estimated to reach $18.9 trillion by 2033. Industry experts believe that this forecast may even be conservative, as stablecoin adoption indicates a much larger market expansion.The rapid growth of tokenized RWAs is also boosting blockchain adoption metrics, as 60% of RWA tokenization value is being driven by Ethereum.Source: rwa.xyzStellar Focuses on Billions in Tokenized RWAsBut Ethereum isn’t the only Layer-1 (L1) blockchain contributing to the growth of tokenized RWAs. Denelle Dixon, executive director of Stellar Development Foundation, told Cryptonews that the Stellar network ranks second, right behind Ethereum, for the most tokenization use cases.“Stellar is the second largest Layer-1 for RWA value after Ethereum, with around $470 million in tokenized treasuries, commodities, and yield-bearing stablecoins on the network,” Dixon stated.Dixon elaborated that in November 2019, Franklin Templeton—one of the world’s largest financial institutions—started planning to build a tokenized money market fund on Stellar.Franklin Templeton has since grown its “OnChain U.S. Government Money Market Fund” (FOBXX) to be the third-largest tokenized money market fund. The fund is available on Ethereum, Coinbase’s Layer-2 Base, Aptos, and Avalanche, but the Stellar network functions as the primary blockchain.According to Dixon, the OnChain U.S. Government Money Fund has about $701.7 million in total asset value, with the majority of $466.5 million being on the Stellar network. “By tokenizing securities, this integration enables institutions to reduce transaction costs from $1 to less than a penny—the $50,000 cost of 50,000 transactions becomes just $120,” Dixon noted.Franklin Templeton explains as follows: If 50,000 transactions are processed in the traditional financial system, the fees alone amount to about $50,000. However, when they utilized Stellar to tokenize RWA (Real-World Assets) and manage operations, the cost of processing 50,000... pic.twitter.com/IuWATLpEpJ— Dao world (@Koreanteacher1) January 4, 2025For an institution like Franklin Templeton that manages $1.7 trillion in assets, such efficiency gains could likely reshape operational economics. Moving forward, Dixon shared that Stellar aspires to power $3 billion in RWA value on-chain within this year alone. She explained that Stellar has set specific goals around new partnerships to ensure this.For example, Dixon pointed out that investment firm Societe Generale-Forge has launched its EUR-backed stablecoin (EURCV) on the Stellar network. In addition, asset management firm Ondo has plans to launch its yield-bearing stablecoin, the United States Dollar Yield (USDY), on Stellar in the coming months. Dixon also mentioned that Etherfuse is bringing “stablebonds” to the Stellar network, which will offer asset-backed products designed to hold value and provide potential returns. Avalanche Plans To Partner With TradFi InstitutionsL1 blockchain Avalanche is also seeking to drive billions into the tokenized RWA market. Morgan Krupetsky, senior director of business development, institutions, and capital markets for Ava Labs, told Cryptonews that Avalanche’s primary mission has been to digitize and tokenize the world’s assets.“Avalanche was purpose-built for this next generation of blockchain-enabled finance,” Krupetsky remarked. “The network has high throughput, sub-second finality, low transaction costs, and customizability, making it an ideal foundation for real-world asset (RWA) tokenization, trade, and transfer at internet scale.”Asset management firm WisdomTree recently expanded its institutional investment platform, WisdomTree Connect, to include 13 tokenized funds across various blockchains, including Avalanche. “We are committed to cultivating a high-quality tokenized asset ecosystem by deepening relationships with large, reputable asset managers and issuers,” Krupetsky remarked. She added that Avalanche plans to expand the diversity and scale of tokenized RWAs on the network. This includes offering stablecoins and other cash equivalents to stocks, bonds, private credit, and other alternatives.“In parallel, we are focused on distribution—both within Avalanche’s crypto-native and DeFi ecosystem, as well as through more traditional capital markets partners and challenger firms,” Krupetsky noted.To put this in perspective, Krupetsky shared that finance company Intain developed a platform that leverages Avalanche architecture to launch an on-chain marketplace for tokenized asset-backed securities (ABS).Known as “IntainMARKETS,” it facilitates asset issuance, investment, administration, and trading. The platform has already administered over $6 billion in tokenized loans.Intain has launched the first institutional Subnet on #AvalancheIntainMARKETS, an on-chain marketplace for asset-backed securities, hopes to facilitate efficient, cost effective, and transparent asset issuance, investment, and administration.See why Intain #ChoseAvalanche https://t.co/nFT6O3M0Hd— Ava Labs (@AvaLabs) January 31, 2023Injective Focuses on RWA Utility in DeFiL1 network Injective is also focused on reshaping finance by making RWA tokenization compliant through a native token factory and permissions module.Eric Chen, co-founder of Injective, told Cryptonews that Injective’s on-chain exchange module lets any issuer create secondary markets for their assets. “Libre, an RWA issuer, recently launched tokenized versions of a BlackRock money market fund and a Laser Digital carry fund,” Chen said. “They’re setting up a BlackRock/Laser Digital market on Injective, where over 15 institutional market makers can quote prices, allowing users to enter and exit these funds seamlessly in a liquid manner.”Chen noted that this unlocks liquidity and democratizes access to products previously only available to a select few.He added that another key use case for Injective is collateralization. This means that Injective allows users to margin Bitcoin (BTC) or Ethereum (ETH) perpetuals with yield-bearing stablecoins.“The goal for us isn’t just about RWA issuance, but rather activating real utility in DeFi, from secondary trading to margin and lending use cases,” Chen commented. “While we haven’t disclosed a target figure, Injective is built to capture a major share of the RWA market, which already exceeds $10 billion in total value locked.” Challenges To ConsiderWhile it’s clear that blockchain networks are driving the growth of RWAs, challenges remain.Although tokenizing an asset is an increasingly commoditized process, Krupetsky explained that creating consistent demand, along with secondary market liquidity, has been a hurdle. “Without active markets or integration into broader DeFi or TradFi workflows, tokenized RWAs risk staying static representations rather than functional assets,” she mentioned. To combat this, Krupetsky believes that the industry should focus on “distribution-first tokenization,” where RWAs are integrated first into DeFi products. Industry experts should then think about how these offerings can fit into more traditional distribution channels.While it’s impressive to see BlackRock and Franklin Templeton enter the sector, Krupetsky further stated that most financial institutions and market participants still operate on legacy systems.“This means there still isn’t seamless integration bridges, onboarding, servicing, and reporting on tokenized assets,” she said. “To combat this, the industry should invest in middleware, token standards, and integration tools that enable compatibility with both DeFi and TradFi systems, while working closely with custodians, fund administrators, and compliance providers to bridge on- and off-chain infrastructure.”Unclear regulatory frameworks across jurisdictions remain a further challenge, but industry experts are confident that 2025 will be a milestone year for tokenized RWAs.Bhaji Illuminati, CEO at RWA platform Centrifuge, told Cryptonews that it’s becoming clear that institutional interest is turning into action. She added that regulatory clarity is slowly improving, while the infrastructure powering tokenization is maturing. “Tokenized RWAs are moving from pilot programs to real allocation strategies, and we expect exponential growth in on-chain volumes as tokenization becomes a core part of asset issuance and trading,” Illuminati said. The post RWAs Boom as Layer-1 Blockchains Ignite $18.9T Tokenization Surge appeared first on Cryptonews.
You may also like

Ten Thousand Words Interpretation of STRC: Strategy for Making Money to Buy Coins New Magic
The real momentum of the BTC rebound - for every 1 dollar of STRC issued, there corresponds 3 dollars of BTC buying.

What competitive advantages are still defensible in the AI era?
Based on the signals received, determine the direction, and act immediately

For Whom the Bell Tolls, For Whom the Lobster Feeds? A Dark Forest Survival Guide for the 2026 Agent Player
If an AI has read Machiavelli and is much smarter than us, they would be very good at manipulating us — and you wouldn't even realize what's happening.

Circle CEO's Latest Interview: Stablecoins Are Not Cryptocurrency
The true meaning of a stablecoin is to turn the US dollar into an internet-native currency and eventually create an internet financial platform

Deconstructing the Public Chain Pharos Capital Game: Is a $950 million valuation supported by assets like photovoltaics just a shell transaction under layers of betting?
When a physical industry company injects physical assets into a Layer 1 project, it can easily create a valuation of 950 million dollars by calculating several times the value of the physical assets. Is this kind of capital game too outrageous? Does the crypto market really need such RWAs?

a16z: AI is making everyone 10x more productive, but the true winner has yet to emerge
Institutional AI and Retail AI "Better Integration" is an Inevitable Trend.

Why did the star Web3 project Across Protocol choose to abandon DAO?
The proposal for Across to privatize itself is a rare move, but it comes at a time when the industry is beginning to recognize that DAOs are a difficult organizational structure to operate.

In fact, ETH scaling is a major benefit for L2
ETH has finally admitted defeat—its Rollup-centric roadmap is unworkable, while the monolithic scaling solutions adopted by blockchains like Solana have proven to be correct.

Memories: 10 Key Contributions of the TON Core Team That Few People Knew in the Early Days
Every line of code, every tool we build, every sleepless night spent maintaining the network—these efforts have laid the foundation for TON's development today.

2025 South Korea CEX Listing Post-Mortem: Investing in New Coins = 70% Loss?
The 2025 South Korean exchange's new token listing performance is structurally similar to Binance's, with no significant differences.

BIP-360 Analysis: Bitcoin's First Step Towards Quantum Immunity, But Why Only the "First Step"?
This article explains how BIP-360 reshapes Bitcoin's quantum defense strategy, analyzes its enhancements, and discusses why it has not yet achieved full post-quantum security.

50 million USDT exchanged for 35,000 USD AAVE: How did the disaster happen? Who should we blame?
Due to a fatal flaw in the transaction path, a $50 million DeFi operation was executed with almost zero protection, resulting in nearly the entire amount of funds evaporating in a tiny liquidity pool.

The Cryptographic Past of the Middle East
Reality is often more exciting than fiction.

Resolving the Intergenerational Prisoner's Dilemma: The Inevitable Path of Nomadic Capital Bitcoin
When the baby boomer generation collectively sells off, who will become the "greater fool" in the next round of asset crashes?

Who Will Control AI? Why Decentralized AI May Be the Only Alternative to Government and Big Tech
AI has become critical infrastructure, and governments and corporations are competing to control it. Centralized development and regulation are entrenching existing power structures. The Web3 community is building a decentralized alternative — distributed compute, token incentives, and community governance — before that window closes.

Vitalik wrote a proposal teaching you how to secretly use AI large models
Vitalik believes that in the AI era, users should not have to give up their identity to use an AI tool.

On the eve of the explosion of on-chain options
Options are becoming a new anchor in the cryptocurrency market.

WEEX AI Hackathon: How Did This AI Trading Winner Succeed?
A self-taught AI trading enthusiast achieved top-10 results at the WEEX AI Hackathon. Learn about the mindset, AI tools, and lessons behind this impressive performance.
Ten Thousand Words Interpretation of STRC: Strategy for Making Money to Buy Coins New Magic
The real momentum of the BTC rebound - for every 1 dollar of STRC issued, there corresponds 3 dollars of BTC buying.
What competitive advantages are still defensible in the AI era?
Based on the signals received, determine the direction, and act immediately
For Whom the Bell Tolls, For Whom the Lobster Feeds? A Dark Forest Survival Guide for the 2026 Agent Player
If an AI has read Machiavelli and is much smarter than us, they would be very good at manipulating us — and you wouldn't even realize what's happening.
Circle CEO's Latest Interview: Stablecoins Are Not Cryptocurrency
The true meaning of a stablecoin is to turn the US dollar into an internet-native currency and eventually create an internet financial platform
Deconstructing the Public Chain Pharos Capital Game: Is a $950 million valuation supported by assets like photovoltaics just a shell transaction under layers of betting?
When a physical industry company injects physical assets into a Layer 1 project, it can easily create a valuation of 950 million dollars by calculating several times the value of the physical assets. Is this kind of capital game too outrageous? Does the crypto market really need such RWAs?
a16z: AI is making everyone 10x more productive, but the true winner has yet to emerge
Institutional AI and Retail AI "Better Integration" is an Inevitable Trend.