Best Blockchains for RWA Tokenization: Ethereum vs Rivals

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Best Blockchains for RWA Tokenization: Ethereum vs Rivals
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RWA Signal Insight

U.S. Treasuries

The tokenized real-world asset (RWA) market on public blockchains reached $38.17 billion by August 9, 2026, marking a 540% growth since early 2025. Ethereum remains the dominant network, holding approximately 53% of total RWA value due to its deep DeFi liquidity and institutional credibility. Major products like BlackRock’s BUIDL fund, which held $2.68 billion as of August 2026, have expanded across multiple chains including Avalanche, Solana, and various Layer 2 solutions to optimize for cost and speed. Avalanche has specifically emerged as a key institutional hub, recently seeing a $436 million weekly inflow into the BUIDL fund. The market is increasingly characterized by a multi-chain strategy where issuers leverage Ethereum for settlement security while utilizing alternative networks for high-frequency or cost-sensitive operations. Regulatory frameworks like the U.S. GENIUS Act, EU’s MiCA, and Hong Kong’s Stablecoins Ordinance are providing the necessary clarity to support this institutional adoption. This shift toward specialized infrastructure, supported by interoperability protocols like Chainlink CCIP, is essential for the market to scale toward projected multi-trillion dollar valuations.

Key points

  • Public blockchain RWA market reached $38.17 billion as of August 9, 2026.
  • Ethereum maintains a 53% market share of total tokenized real-world asset value.
  • BlackRock's BUIDL fund assets on Avalanche exceeded $900 million following rapid inflows.
  • Tokenized gold spot trading volume hit $90.7 billion in Q1 2026 alone.

Background

Real-world asset (RWA) tokenization is the process of converting physical or financial assets, such as U.S. Treasuries, real estate, or commodities, into digital tokens on a blockchain. This allows for fractional ownership, increased liquidity, and 24/7 on-chain settlement. Institutions utilize these tokens to streamline administrative processes and provide investors with programmable access to traditional financial instruments.

Relevance score

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