The tokenized asset market reaches a record high of $270 billion, with over half the volume coming from Ethereum, driven by increasing institutional investment.
The real-world asset (RWA) tokenization market has recorded a historic milestone as total Assets Under Management first exceeded $270 billion. According to data from Token Terminal, the volume of digitized assets including currencies, commodities, government bonds, private credit, direct investment, and venture capital has reached this record high, reflecting the increasingly widespread acceptance of blockchain technology in traditional finance.
This impressive growth is primarily driven by institutional investors, who are increasingly adopting blockchain technology to issue and trade traditional financial instruments. Asset tokenization offers significant benefits such as shortened settlement times, reduced transaction costs, and increased asset liquidity, making it an attractive solution for large financial institutions.
In the current market structure, approximately $150 billion of industry volume comes from USDT stablecoin, dominating the total AUM. The top five tokenized assets by AUM include USDT on TRON, USDT on Ethereum, USDC on Ethereum, USDS on Ethereum, and USDE on Ethereum, demonstrating the dominance of stablecoins in this market.
Ethereum Leads the Asset Tokenization Ecosystem
Assets on Ethereum account for about 55% of industry AUM, making this blockchain a crucial platform for asset tokenization. Ethereum's popularity is explained by its mature smart contract ecosystem and diverse token standards, which help simplify the issuance of stablecoins and digitized financial instruments.
This leading position reflects not only Ethereum's superior technical capabilities but also the market's trust in the platform's stability and security. The rich ecosystem with numerous decentralized applications and DeFi protocols also creates a favorable environment for developing tokenized financial products.
Excluding stablecoins, by mid-2025, the RWA tokenization market is expected to reach around $24 billion, while the total RWA market capitalization will reach $233 billion. This discrepancy indicates the enormous growth potential of the market, primarily driven by demand for fiat-pegged stablecoins.
The future prospects of the asset tokenization market become even more promising as analysts predict the strongest growth in the next decade will come from the tokenized real estate segment. Estimates suggest this market could reach $4 trillion by 2035, demonstrating the transformative potential of asset tokenization technology.
Analysts at the Bank for International Settlements (BIS) believe asset tokenization technology will become the foundation for the future financial system. This reflects the deep digitization trend in the financial sector and blockchain's ability to revolutionize how assets are issued, traded, and managed globally.
