Will Tokenized Real-World Assets Overtake DeFi in 2025?

In 2025, the cryptocurrency world underwent a significant transformation with the emergence of Real-World Asset (RWA) tokenization. This innovation brought traditional assets like real estate and stocks into the realm of decentralized finance (DeFi), marking a major shift in the industry.

The total value locked (TVL) in RWAs exceeded $10 billion, signaling a growing trend towards tokenizing real-world assets for various benefits such as faster settlements, fractional ownership, and round-the-clock trading. This development has opened up new opportunities for investors and has the potential to revolutionize the financial markets.

One of the key developments in this space is the partnerships formed between companies like RWA Inc. and Novastro, which leverage AI-driven solutions to enhance security and compliance in RWA tokenization. This collaboration is seen as a pivotal moment for DeFi, as it aims to make financial markets more accessible and efficient, with predictions suggesting that RWAs could become dominant in the sector.

Real-world asset tokenization has gained significant momentum in recent years, proving to be a resilient sector even during market downturns. Major financial players like BlackRock and its BUIDL fund have shown a keen interest in this emerging space, highlighting the growing importance of RWAs in the crypto market.

Interestingly, RWAs have emerged as the top performers in the crypto market, with an average growth rate of 237% this year. While other sectors struggled, RWAs, along with Bitcoin, privacy coins, and exchange tokens, have shown significant profits.

Among the top RWA crypto projects are Mantra and ONDO, with Mantra reaching an all-time high on February 23. PENDLE, once a top 100 player, has slipped to #131 in 2025. Crypto analyst rektdiomedes remains bullish on RWAs, particularly Maple Finance, predicting a substantial growth in securitization and capital market infrastructure within the crypto industry.

The DeFi Investor recently reported that the total value of RWAs has doubled in the past year, surpassing $18 billion, with Private Credit accounting for most of this value. The number of holders and unique RWA interactions have also reached all-time highs, indicating a growing interest in this sector.

BlackRock’s tokenized treasury fund, BUIDL, has crossed $1 billion in assets, making it the largest tokenized RWA. Hashnote, the issuer of a tokenized money market fund acquired by Circle, ranks second with nearly $900 million, showcasing significant growth over the past year.

Li Lang, CEO of HashKey OTC, believes that tokenizing sustainable assets like renewable energy projects and carbon credits presents an exciting opportunity for 2025. RWAs are now being integrated with Layer-1 and Layer-2 blockchain solutions to improve scalability and reduce transaction costs, addressing key barriers to adoption.

Liang emphasized the importance of user-focused approaches in the success of projects like MANTRA and highlighted the resilience of RWAs compared to other speculative assets. Backed by real-world value and offering stable cash flows, RWAs are seen as less vulnerable to market fluctuations.

Looking ahead, Liang believes that the future success of RWAs hinges on institutional adoption and clear regulatory frameworks. As this sector continues to evolve and expand, it has the potential to reshape the financial landscape and drive further innovation in the world of decentralized finance.