Main Points:
- Stablecoins currently dominate RWA tokenization but account for only ~90% of the market; non-stablecoin RWAs stand at just $23 billion, or ~10% of the total.
- Regulatory frameworks are maturing in Singapore, Switzerland, the EU, Jersey, and the U.S., though inconsistent KYC requirements still pose hurdles.
- Private equity, private credit, and illiquid commodities represent the most promising growth areas, delivering on-chain efficiency and liquidity advantages.
- Market projections forecast the tokenized RWA sector reaching tens of trillions of dollars within the next decade.
- Notable real-world examples—such as the $75 million Latin American oil & gas deal—underscore growing institutional adoption.
- Infrastructure innovations (Ethereum-based protocols, tokenized treasuries, collateral platforms) are driving deeper integration between TradFi and DeFi.
- Institutional bodies like the DTCC, major banks, and fund managers are actively developing standards and pilots for broader RWA issuance and custody.
Market Overview and Current State of Non-Stablecoin RWAs
As of mid-2025, the tokenization of real-world assets (RWAs) outside of stablecoins totals approximately $23 billion—just 10% of the broader stablecoin-backed RWA market which itself exceeds $230 billion. Stablecoins, anchored to fiat currencies or precious metals, have thus far led tokenization initiatives due to clear use cases in payments and remittances. However, this concentration signals significant untapped opportunity, as tokenizing other asset classes could unlock new liquidity pools and efficiency gains for investors and issuers alike.
The Role of Regulatory Progress and Remaining KYC Challenges
Standard Chartered’s June 18 report highlights encouraging regulatory developments in jurisdictions such as Singapore, Switzerland, the European Union, and Jersey, where governments have begun to clarify the legal status of tokenized instruments and establish licensing regimes for custodians and issuers. Similarly, the DTCC reports that both U.S. Congress and the Senate are advancing policies to support stablecoin issuance and broader tokenized asset frameworks, while the Bermuda Monetary Authority has granted comprehensive licenses to Circle’s digital asset operations. Despite these advances, inconsistencies in Know-Your-Customer (KYC) requirements across borders remain a key impediment, often leading to fragmented on-chain implementations and complicating cross-jurisdictional issuance.
Growth Projections and Emerging Segments
Long-term forecasts paint a bullish picture: Boston Consulting Group projects that RWA tokenization could soar to $23.4 trillion by 2033, while earlier analyses by Standard Chartered and Synpulse estimated a $30.1 trillion market by 2034, with trade finance alone comprising nearly $4.8 trillion of that total. These projections are driven by increasing institutional trust, technological maturation, and the promise of faster settlement times, reduced counterparty risk, and lower costs. As tokenization platforms scale and integrate with traditional custodians and clearinghouses, we can expect to see a proliferation of new RWA products spanning debt, equity, real estate, and beyond.
Targeting Private Markets: Private Equity and Commodity Tokenization
The next wave of growth is poised to come from illiquid assets traditionally confined to Private Equity (PE), private credit, and commodities like agriculture or energy reserves. Standard Chartered suggests that tokenizing private credit instruments—where settlement speed and transparency are major pain points—could deliver significant value by enabling fractional ownership, instant settlement, and automated compliance checks. This thesis is underscored by real-world deployments such as the recent $75 million Latin American oil & gas facility acquisition executed through Global Settlement’s tokenization platform, which combined stablecoin payments with tokenized debt and equity to streamline capital flows and enhance traceability.
Technological Infrastructure and On-Chain Efficiency
A foundational requirement for non-stablecoin RWA growth is robust blockchain infrastructure that offers low transaction costs, high throughput, and secure custody solutions. Ethereum remains the dominant platform, with specialized layer-2 networks and sidechains delivering enhanced scalability for issuance and secondary trading. Additionally, tokenized treasury solutions—led by BlackRock’s and Securitize’s BUIDL fund—have amassed over $5.5 billion in assets, highlighting institutional confidence in on-chain settlement for short-duration, liquid instruments. Emerging interoperability standards (e.g., Token Taxonomy Framework) and cross-chain bridges are further enabling seamless movement of tokens between ecosystems, reducing friction for global investors.
Institutional Adoption and Use Cases
Beyond banking institutions, central securities depositories (CSDs) and custodians are piloting tokenized asset services. The DTCC is exploring tokenization pilots to streamline settlement finality, while platforms like Deribit and Crypto.com have begun accepting tokenized money-market funds (e.g., BlackRock’s BUIDL) as collateral, signaling risk management innovations in derivatives markets. Moreover, fund managers such as Janus Henderson, Fidelity, and Franklin Templeton are experimenting with tokenized ETFs and mutual funds, demonstrating that established asset management players view blockchain as a catalyst for operational efficiency and investor accessibility.
Challenges and Considerations
While the trajectory is promising, several challenges remain. Regulatory fragmentation and evolving tax treatments of tokenized securities require ongoing dialogue between issuers and policymakers. Custody and insurance frameworks for tokenized assets must mature to match the rigor of traditional financial markets. Interoperability between on-chain and off-chain systems—particularly for corporate actions, voting rights, and dividend distributions—must be robustly addressed to deliver true end-to-end digital workflows. Finally, market education and standardization around token governance models will be critical to build investor trust.
Conclusion
The horizon for non-stablecoin RWA tokenization is expanding rapidly. With only 10% of the $230 billion + stablecoin market currently captured by other asset classes, there lies an enormous opportunity in private equity, private credit, commodities, and specialized trade finance instruments. Regulatory advancements across major jurisdictions are laying groundwork, even as KYC inconsistencies highlight the need for harmonization. Technological innovations—ranging from layer-2 blockchains and tokenized treasuries to institutional custody solutions—are creating the infrastructure necessary for large-scale adoption. Notable real-world deployments, such as the Latin American oil & gas deal and collateralized money-market funds, demonstrate that tokenization is moving beyond pilot stages into tangible market use. As the market matures, we expect RWA tokenization to evolve into a multi-trillion-dollar ecosystem, offering investors new yield opportunities, enhanced liquidity, and streamlined operations. For those seeking the next frontier in digital assets and practical blockchain applications, the time to engage with non-stablecoin RWAs is now.
