Author
Hongji Feng
Author
Hongji Feng
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Key Takeaways:
- Skynet forecasts the RWA tokenization market could reach $16 trillion by 2030, driven by institutional and DeFi collaboration.
- U.S. Treasury tokenization is projected to hit $4.2 billion in 2025, with short-term bonds leading activity.
- Regulatory developments in Hong Kong, Singapore, and the U.S. are laying the groundwork for broader institutional entry.
The market for tokenized real-world assets (RWA) could expand to $16 trillion by 2030, according to the 2025 Skynet RWA Security Report.
The report said tokenized U.S. Treasuries have already grown rapidly, and are projected to reach $4.2 billion this year, with short-term government bonds accounting for most of the activity.
Institutional Interest in Tokenization
The report noted that traditional financial institutions and blockchain-native firms are driving adoption, using RWA products for both yield opportunities and liquidity management.
Skynet said major banks and asset managers are exploring tokenization as a way to digitize assets ranging from debt instruments to commodities. The report pointed to growing use cases in private credit, trade finance, and money market funds.
“This convergence of traditional finance (TradFi) and decentralized finance (DeFi) presents opportunities for improved efficiency, transparency, and accessibility,” the report stated.
It also noted that platforms in Hong Kong, Singapore, and the United States are setting regulatory frameworks that could accelerate institutional entry.
Challenges for RWA Growth
Despite the growth potential, the report outlined structural hurdles for the sector, including limited secondary market liquidity, varying legal treatment across jurisdictions, and the need for standardized risk controls.
Cybersecurity and smart contract vulnerabilities were also noted, with Skynet stressing that “use of regulated, qualified custodians with robust security infrastructure, such as federally chartered crypto banks or firms licensed by reputable authorities, is a critical factor.”
The report projected that infrastructure investments and regulatory clarity would be required to meet the forecast $16 trillion market size by the end of the decade.
“The powerful combination of reliable real-world yields with blockchain’s native liquidity and composability is drawing in both retail and institutional capital,” the report said.
While the tokenization of real-world assets is gaining traction in capital markets, many retail investors still lack direct access to these products. Bridging this gap may require regulated intermediaries and simplified on-ramps that align with existing investor protections.
Frequently Asked Questions (FAQs)
Institutions are evaluating tokenization for private credit, real estate, commodities, and even intellectual property. These categories are less liquid and harder to price, but tokenization could streamline settlement and open access to new investor groups.
Most RWA tokens are held by institutions or issued in closed environments with restricted trading. Without broader exchange listings or robust DeFi integration, active secondary trading remains difficult.
Some central banks are exploring tokenization to improve collateral mobility or enhance transparency in monetary operations. Public-sector involvement could also boost market credibility and infrastructure reliability.
Yes, the treatment of RWA tokens may differ by jurisdiction and asset type. Investors and issuers must consider valuation, reporting standards, and auditability—areas where current rules are still catching up to blockchain formats.
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