Tokenized RWAs post new $20B highs as RWA tokens defy market decline

Tokenized RWA crossed the threshold of $20B in value locked after growth continued in the first months of 2025. Private credit was the most rapidly tokenized asset, showing that a whole industry is turning to crypto for liquidity. 

Tokenized RWA recently crossed the $20B milestone, a growth that has come courtesy of private credit. RWA tokenization is among one of the strongest narratives, surviving even the recent market drawdown. 

Based on various metrics, RWA tokenization, excluding stablecoins has surpassed $20B. Over $11.9B is tied into tokenized private debt, which has the largest share of all asset classes. The complete data on tokenization is fragmented, as token issuers use different chains and not all tokenized assets are trading in the same way. 

RWA tokenization is also unregulated, with each platform deciding on its own format and approach. Tokenized assets range from highly tradable stablecoins backed by government securities to specialized token-based funds only available for accredited investors. 

According to Moody’s, private credit is one of the fastest-growing sources of liquidity, with $1.7T in assets under management and about $500B in assets waiting to be deployed. The current value captured by crypto companies is only a small fraction and is almost experimental in its valuation. Private credit offers opportunities to middle-market companies and privately owned enterprises. 

Moody’s predicts private credit will expand to $3T AUM by 2028, becoming one of the biggest sources of financing.

RWA companies offer tools to raise liquidity

The recent expansion of the RWA narrative led to the creation of additional infrastructure. DigiFT announced its partnership with Ivesco USA to launch a platform for tokenized senior secured loans with daily liquidity.

DigiFT will offer its tokenized products to accredited investors. The platform’s main task would be to partner with reliable companies that issue private debt and offer access to businesses with strong fundamentals. 

DigiFT will tokenize a small fraction of Ivesco’s portfolio, following the fund’s overall strategy of searching for reliable businesses. 

On the side of purely crypto startups, the Kadena ecosystem also aims to tap the growing trend for tokenized securities. Kadena is offering a grant program for projects building new RWA infrastructure. 

🚀 Kadena announces a $25M RWA Grant Program to accelerate the adoption of Real World Assets 🌎.

Designed to foster compliance-driven innovation, this initiative supports developers creating tokenized RWA solutions on our scalable PoW blockchain. $KDA

📖 Learn more:… pic.twitter.com/aSCzaJxDlf

— Kadena (@kadena_io) February 18, 2025

Other leading issuers of tokenized RWA include Securitize and Apollo Global Management, which focuses on alternative assets. 

Other avenues of liquidity access may include crypto-powered IPOs. US entrepreneur Balaji Srinivasan recently commented on the option of offering direct token sales, backed by company shares. 

Srinivasan predicts a return to the token sale era, but this time backed by already developed companies. The crypto market retains access to liquidity, and RWA tokens based on stocks may bring additional investments. 

From IPO and M&A to crypto?
The tech M&A era may be ending.
But the crypto era could be just beginning.

Because the combined effect of new policies is to make it much harder for startups to IPO or M&A, but much easier to sell equity-backed security tokens on the Internet.

Let… pic.twitter.com/t748t1wc9K

— Balaji (@balajis) February 19, 2025

Currently, tokenized stocks are rarely tokenized formally, and data shows around $15M in tokenized shares. Equity deals through the crypto markets may boost adoption and use cases, reviving the market for assets with intrinsic value. 

RWA narrative tokens stage a recovery

Tokens bearing the RWA label recently staged a recovery, with leading assets going against the market direction. RWA tokens are valued at only $37B in total market capitalization, though they remain one of the most robust classes of crypto. 

As meme tokens see an outflow of enthusiasm, RWA is one of the first sectors to have a revival. Mantra (OM) had the biggest weekly rally, appreciating by over 29% to $7.56. Maker (MKR) also rallied to $1,189.90, as the DeFi hub is one of the biggest users of tokenized bonds used as collateral. 

RWAs have continued to outperform other narratives in the past 30 days, retaining their lead in all sectors. However, not all tokens are guaranteed to outperform, and altcoins are still relatively weaker. There is still no consensus on the most usable type of tokenization. Older platforms and altcoin projects are trying to revive their fortunes by adopting some form of RWA. The tokenized assets themselves also have a relatively low turnover and are often used for treasuries and unmovable vaults.

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