Q2 2025 RWA Tokenization Report: $25B Market Growth & Institutional Adoption

The real-world asset tokenization market reached a major milestone this quarter. In July 2025, tokenized real-world assets climbed past $25 billion in value, revealing how this sector is gaining traction among institutional investors and financial innovators alike. 

However, despite these optimistic figures, questions remain about transparency, project quality, and accessibility of information. This article unpacks the Q2 2025 RWA tokenization report, sector breakdowns, and what cautious investors should note before entering this rapidly evolving space.

The State of RWA Tokenization in Q2 2025

Tokenized real-world assets (RWAs) have grown significantly, with the total market value surpassing $25 billion as of July 10, 2025. Compared to last month, this figure marks a 7.23% increase. The number of asset holders has also jumped by 72% in just 30 days, reaching 293,006 holders according to data from rwa.xyz.

Private credit continues to dominate the sector. Blockchain-verified private credit products currently hold $14.73 billion in onchain value. Within this, Figure has emerged as a leader, with $13.6 billion in cumulative onchain loans. Other platforms in this niche include Tradable and Maple, which contribute to private credit’s commanding market share.

The second largest segment is tokenized U.S. Treasury debt or Treasury funds, holding $7.53 billion, up 1.96% in a week. Blackrock’s BUIDL leads the Treasury tokenization market with $2.82 billion onchain, followed by Franklin Templeton’s BENJI at $790.44 million and Superstate’s USTB with $711 million as of July 10.

Tokenized commodities rank third with a market cap of $1.61 billion. The bulk comes from gold-backed tokens such as Paxos’ PAXG and Tether’s XAUT, both recognised for bridging physical gold with blockchain-based digital representations.

Beyond these leading sectors, other tokenized categories include institutional alternative funds, non-U.S. government debt, stocks, and corporate bonds. These remain smaller in market size but reflect growing diversification within tokenization efforts.

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Institutional Adoption and Market Projections

Institutional interest in RWAs has grown steadily over recent years. Many financial institutions view tokenization as a strategic innovation to unlock liquidity in traditionally illiquid assets, enhance operational efficiency, and reach broader investor segments.

The current $25 billion market milestone represents a nearly fivefold increase in three years, suggesting a consistent upward trajectory. Market projections vary depending on assumptions about adoption rates, regulatory clarity, and technological development. 

McKinsey forecasts a $2 trillion tokenized asset market, while Boston Consulting Group (BCG) suggests a more aggressive growth scenario, projecting up to $16 trillion by 2030.

Private credit tokenization, with its current dominance, has been widely adopted by firms seeking efficient settlement processes and global investor access. Meanwhile, tokenized U.S. Treasury debt has gained popularity among investors looking for stable yields with blockchain transparency.

The tokenized commodities market, led by gold-backed tokens, is also expanding. This reflects ongoing demand for assets that combine physical backing with blockchain’s settlement and storage advantages.

Despite these promising figures, it is crucial to note that not all tokenization projects operate with the same level of transparency or accessibility. Many projects have inaccessible whitepapers or incomplete public documentation. This limits investor understanding and increases the need for caution.

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Challenges and a Note of Caution

While tokenization appears to be the future of financial markets, this sector carries substantial risks. A key concern is the quality and clarity of available information. Some projects lack accessible whitepapers on their official websites, raising questions about their underlying structures and governance frameworks.

Investors must consider technological, regulatory, and operational risks before participating in this market. Blockchain-based tokenization promises efficiency and accessibility, but these benefits depend on the reliability of smart contracts, security audits, and compliance with evolving regulations in each jurisdiction.

Moreover, rapid market growth can lead to speculative bubbles, where valuations outpace the fundamental value of underlying assets. It is therefore advisable for investors to conduct thorough due diligence, verify asset backing and custodianship, and ensure they understand each token’s redemption rights and legal standing.

In particular, investors should remain cautious about emerging projects without clear disclosures or publicly verifiable documents. While institutional adoption is accelerating, the market is still in a formative phase. 

Regulatory frameworks are still developing, and standardisation remains limited. These factors underline the need for balanced decision-making and prudent risk management when investing in tokenized real-world assets.

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Conclusion

The Q2 2025 RWA tokenization report illustrates a sector that has crossed the $25 billion mark, driven by private credit, U.S. Treasury debt, and tokenized commodities. Institutional investors are increasingly integrating these assets into their portfolios as part of a broader strategy to enhance efficiency and access new financial instruments. 

However, despite these impressive figures, tokenization remains an emerging market with information gaps and potential operational risks. Investors are encouraged to remain cautious, verify each project’s fundamentals, and avoid entering the market without a comprehensive understanding of its risks and regulatory nuances.

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FAQ

What is RWA tokenization?

RWA tokenization refers to converting real-world assets like private credit, bonds, or commodities into digital tokens on a blockchain.

How large is the RWA tokenization market in 2025?

As of July 2025, the market has surpassed $25 billion in value with over 293,000 asset holders.

Which sector leads the tokenized asset market?

Private credit holds the largest share with $14.73 billion in onchain value, led by firms such as Figure.

Is investing in tokenized assets safe?

Investing carries risks. Many projects lack accessible whitepapers or clear information, so careful due diligence is essential.

What is the market projection for tokenized assets by 2030?

Estimates vary from $2 trillion by McKinsey to $16 trillion by Boston Consulting Group, depending on adoption and regulation.