What is RWA tokenization? real-world assets explained
U.S. Treasuries
Tokenized real-world assets (RWAs) reached a significant milestone in 2026, with total on-chain value surging from $5.5 billion in 2025 to $30 billion by mid-2026. Major financial institutions including BlackRock, JPMorgan, and Franklin Templeton are driving this growth, signaling a shift toward integrating traditional finance with blockchain infrastructure. The process involves creating digital tokens that represent legal or economic claims to off-chain assets like U.S. Treasuries, private credit, and commodities. Crucially, these tokens act as digital records of ownership rather than the assets themselves, relying on legal structures like special purpose vehicles for enforcement. While the blockchain provides 24/7 settlement and programmability, the underlying value remains tethered to traditional custody and regulatory frameworks. This evolution matters because it bridges the gap between established financial markets and decentralized finance, offering increased efficiency and liquidity. Understanding the distinction between the token and the underlying asset is essential for navigating the risks and genuine innovations within this rapidly expanding sector.
Key points
- ▸Tokenized RWA market value grew from $5.5 billion in 2025 to $30 billion in 2026.
- ▸U.S. Treasuries account for $12.9 billion, while on-chain private credit reaches $19 billion.
- ▸Gold-backed tokens like PAXG and XAUT represent a $5.5 billion segment of the market.
- ▸Institutional leaders include BlackRock, JPMorgan, and Franklin Templeton driving on-chain adoption.
Background
Real-world asset tokenization is a mechanism that maps off-chain assets—such as real estate, government bonds, or commodities—onto a blockchain ledger. It utilizes special purpose vehicles and smart contracts to automate ownership tracking, yield distribution, and compliance, effectively wrapping traditional financial instruments in a digital, programmable format.
Relevance
8.5/10