Tokenized RWA Surpasses $20B, Private Credit Leads the Growth

• Tokenized RWA has surpassed $20 billion in value, with private credit contributing $11.9 billion, making it the fastest-growing sector.
• New platforms like DigiFT and Kadena are expanding infrastructure, enabling businesses and investors to tap into tokenized private credit.
• RWA tokens, including Mantra and Maker, have demonstrated resilience, outperforming other crypto sectors amid market fluctuations.

Private Credit Emerges as Key Growth FactorTokenized real-world assets (RWA) have exceeded $20 billion in total value, with private credit leading the expansion. Over $11.9 billion is allocated to tokenized private debt, making it the dominant asset class. Despite a fluctuating market, the sector continues to attract investors and businesses seeking alternative financing.

Fragmented Market and Adoption Challenges

The tokenized RWA sector lacks a unified framework, as issuers operate across multiple blockchains with varying regulations and liquidity structures. While some tokenized assets are highly tradable, others remain restricted to institutional investors. Stablecoins backed by government securities represent a significant portion, while private debt tokenization continues to rise in prominence.

Moody’s reports that private credit has $1.7 trillion in assets under management, with an estimated $500 billion yet to be deployed. Crypto companies have only tapped into a fraction of this potential, but interest in tokenization is increasing.

With private credit projected to reach $3 trillion AUM by 2028, the sector is expected to be a significant funding source for middle-market enterprises and privately owned businesses.

New Platforms Facilitate Tokenization Growth

Expanding infrastructure has played a crucial role in supporting the RWA trend. DigiFT, in collaboration with Ivesco USA, has launched a platform for tokenized senior secured loans with daily liquidity. The initiative focuses on providing accredited investors with access to reliable private debt issuers. The fund aims to tokenize a small portion of Ivesco’s portfolio while maintaining its investment strategy.

Crypto Startups Embrace RWA InnovationIn addition to institutional partnerships, blockchain-native ecosystems are also exploring tokenized assets. Kadena has introduced a grant program to support projects developing RWA infrastructure. Meanwhile, major issuers like Securitize and Apollo Global Management continue to drive the tokenization of alternative assets, ensuring broader market adoption.

Tokenized Equities and Direct Sales Gain Interest

US entrepreneur Balaji Srinivasan has proposed direct token sales backed by company shares, reviving interest in tokenized stocks. While current tokenized equities remain limited, with only $15 million in tokenized shares, potential crypto-powered IPOs could provide an additional liquidity avenue.

RWA Tokens Show Market ResilienceTokens tied to RWA have demonstrated strong market performance, recovering despite broader crypto downturns. The total market capitalization of RWA tokens stands at $37 billion. Mantra (OM) saw a 29% weekly rally to $7.56, while Maker (MKR) rose to $1,189.90 due to its integration of tokenized bonds as collateral. While some altcoins struggle, RWA tokens remain a robust investment sector.