TBW - Why RWAs are back in the spotlight
Real World Assets, or RWAs, refer to assets derived from the real economy - treasury bills, real estate, corporate receivables, commodities - represented in digital form on a blockchain.
The promise is simple: to enable these assets to be held, transferred and integrated into decentralised finance while taking advantage of blockchain properties such as transparency, traceability and programmability.
In practice, the tokenisation of RWAs meets several key challenges for the ecosystem. It provides more stable returns in a universe still largely dominated by the volatility of cryptos. It also helps to attract institutional investors with products aligned with their standards. Finally, it paves the way for greater market efficiency by making certain assets more liquid and accessible.
A dynamic boosted by high rates
After the euphoria of the early days, decentralised finance (DeFi) is going through a new phase. The years 2020-2021 had seen the emergence of a bubbling ecosystem, driven by outsized returns, sometimes in excess of 100%, often boosted by the inflationary issuance of native tokens. But these reward mechanisms have proved unsustainable. Many of the projects that promised rapid gains collapsed with their tokens.
DeFi has mellowed. The strongest protocols, such as Aave or Uniswap, now dominate the landscape with significantly lower, but more sustainable, returns. In this more mature environment, investors are no longer looking for explosive performance, but for stable income backed by real assets. This is where RWAs gain traction.
The current macroeconomic environment is accelerating this trend. Since 2022, central banks have been raising rates to fight inflation. In May 2025, the Fed is still keeping its key rates between 4.25% and 4.50%. Although inflation is slowing - 2.4% in March compared with 2.8% the previous month - monetary policy remains restrictive. Liquidity is scarce, risk-taking is limited, and investors prefer investments that are considered safe.
This is compounded by persistent geopolitical tensions. The Trump administration is stepping up its tariff threats, rekindling fears of a new round of protectionism. In this uncertain environment, flows are being redirected towards safe-haven assets. Gold has hit new highs, and stablecoin capitalisation is back on the rise, despite a crypto market that is still lagging.
Protocols such as Ondo Finance or Usual are capturing this new demand by offering products exposed to Treasury bonds or bonds, with competitive, low-volatility yields. It is these solutions, hybrids between decentralised finance and traditional assets, that are now attracting the attention of a growing part of the ecosystem.
A market still dominated by stablecoins
Since the beginning of 2023, the Real World Assets (RWA) sector has been growing steadily, with a marked acceleration in recent quarters. Excluding stablecoins, the total value of tokenised assets now exceeds $22 billion. This figure is up sharply, but still modest when compared with the sector's predicted potential ($18,900 billion by 2033 according to Boston Consulting Group).
By including stablecoins - which are often excluded from calculations in order to focus on yield-generating assets such as Treasury bills - the market's overall capitalisation jumps to almost $253 billion. This category alone accounts for more than 90% of current tokenisation, or around $231 billion.
The interest in these stable digital assets is far from trivial. They have become a mainstay of the crypto ecosystem, acting as an exchange tool, store of value and support for investment strategies. This success is also reflected in the financial performance of their issuers. Tether, the originator of USDT, posted a net profit of $13.7 billion in 2024, largely thanks to the investment of its reserves in short-term US Treasury bills. More than $113 billion has been invested in these assets, generating several billion in annual interest.
In an environment of sustained high rates, this business model is proving particularly profitable: as bond market yields rise, so do the revenues of stablecoin issuers. The phenomenon is gaining momentum: since the end of 2024, stablecoin transaction volumes have exceeded those of the Visa network. Next target: the FedACH system, used for interbank electronic transfers in the United States.
But who is really benefiting from this growth? Artemis data shows that centralised exchanges (CEXs) - such as Binance, Coinbase or Kraken - are concentrating the bulk of stablecoin activity. A dynamic that illustrates the dominant role of trading in the current use of these assets.
Over the past year, the RWA market - including stablecoins - has grown by more than 57%. This growth is underpinned by the high level of interest rates, but also by the arrival of institutional players looking for safer, better-remunerated products.
On the infrastructure side, Ethereum remains the benchmark blockchain for tokenisation, accounting for 57% of RWA assets. TRON captures a significant share of the stablecoin market, with nearly $68 billion hosted on its network, followed by Solana (nearly $12 billion).
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Who is leading the RWA race in 2025?
The RWA market is organised around several big names from both traditional finance and DeFi. Leading the way are BlackRock, Franklin Templeton, Ondo Finance and Ethena, who structure the current ecosystem.
BlackRock, the institutional powerhouse
Launched in March 2024, BlackRock's tokenised BUIDL fund has rapidly established itself as the industry benchmark. Built on Ethereum via the Securitize tokenisation platform, the product remains reserved for accredited investors. The total locked-in value (TVL) is $2.8 billion. A strong signal of institutional appetite for these new forms of exposure to traditional assets such as Treasuries.
But put in the context of global finance, this spectacular growth remains marginal. There is considerable potential for expansion if access is widened and regulatory barriers are reduced.
Franklin Templeton remains more discreet
With its FOBXX fund, Franklin Templeton is adopting a similar strategy, investing almost exclusively in US government securities and money market instruments. However, the TVL is much lower than that of BlackRock. The product targets an institutional clientele, with a strict regulatory framework, illustrating the still highly professional positioning of these products.
Ondo Finance, the crypto-native version
Facing the behemoths of traditional finance, Ondo Finance is playing a hybrid card. The protocol offers two products backed by Treasury bonds: USDY, accessible to non-US individuals, and OUSG, aimed at qualified investors. Its TVL is now approaching one billion dollars. This steady rise is driven by the promise of secure, on-chain returns, with KYC procedures that are lighter than those of its institutional competitors.
Gold, a tokenised safe haven
Gold-backed assets are also attracting a broad audience. Paxos Gold (PAXG) and Tether Gold (XAUT) are among the top 5 RWAs. The former is backed by physical gold stored in London. These products stand out for their accessibility: they can be bought freely, without KYC, on platforms such as Uniswap or Binance. This makes them a favoured entry point for crypto-native users looking for safe havens.
Ethena, between stablecoin and RWA
The latest high-profile player, Ethena offers a stablecoin, USDtb, backed by real assets, notably via BlackRock's BUIDL fund. With a TVL of $1.4 billion, it is now the second largest RWA behind BlackRock. However, its structure is based on a chain of dependence: the stability of stablecoin remains closely linked to the performance and solidity of the BlackRock infrastructure.
Why traditional finance is interested in RWA
BlackRock's adoption of the BUIDL fund is not just a signal. It is a concrete demonstration of what blockchain can bring to institutional investment. By integrating this product on Ethereum, the asset management giant is showing that crypto infrastructure can meet the standards of traditional finance while improving key points of the system.
First major advance: accessibility. Where traditional markets impose opening hours, blockchain allows positions to be managed continuously, 24 hours a day, with virtually instantaneous settlements. There's no longer any need to be tied to stock exchanges: interaction with the markets becomes fluid, constant and global.
Second lever: cost reduction. The traditional banking system is still constrained by layers of intermediaries, exchange fees, delays linked to SWIFT networks or correspondent banks. In contrast, certain blockchains such as Solana or second-layer (L2) solutions on Ethereum enable cross-border payments to be made almost immediately and at very low cost. This is a decisive advantage for institutions operating internationally, whether exporters, lenders or investment funds.
Transparency is another structuring advantage. In traditional markets, information is often compartmentalised: it is difficult to obtain reliable data on assets, counterparties or flows in real time. With tokenised RWAs, all the information is recorded on-chain: repayment history, exposure, credit rating, asset status. This level of legibility enhances investor confidence, limits the risk of fraud and facilitates auditability.
Finally, the automation logic via smart contracts reduces human error and administrative slowness. Payment flows, income distribution, maturity or collateral management are automated according to coded rules, without human intervention.
What traditional finance is discovering with RWAs is not a technological gimmick. It's a faster, more efficient and more transparent infrastructure that is beginning to re-shape asset management standards on a global scale.
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Why RWAs also benefit the crypto ecosystem
RWA protocols provide a concrete response to a growing demand in the crypto ecosystem : that of stable returns, backed by real assets. In a world still dominated by volatility, the possibility of obtaining returns of between 4% and 7% via the tokenisation of US Treasury bonds is a major breakthrough. These products combine the reliability of traditional finance with the agility of blockchain, without sacrificing transparency or accessibility.
This hybridisation of traditional assets and decentralised infrastructure is contributing to the emergence of a new type of investment strategy: more diversified, more cautious, but still connected to the blockchain ecosystem. In practice, this allows investors to secure part of their gains, without necessarily repositioning themselves in stablecoins or fiat currencies.
For players in the sector, the rise of RWAs is also a growth lever. The increase in TVL for specialist protocols gives them more weight in the ecosystem, attracts institutional partners and strengthens their legitimacy with regulators. Unlike the more speculative segments - with memecoins leading the way - RWAs embody a more structured approach, better aligned with the standards of the traditional financial world.
They also provide a strategic bridge: for institutional investors who are still hesitant to enter DeFi, RWAs offer a familiar access point. For native crypto users, they enable them to broaden their exposure to yield products, without leaving the on-chain environment. In some cases, they can even offer tax benefits by deferring or avoiding immediate disposal events associated with fiat conversions.
This gradual convergence between real assets and decentralised infrastructure draws a scenario where blockchain does not replace traditional finance, but augments it. And in this model, RWAs are becoming one of the sector's strongest pillars.
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The limits of a still highly centralised success
The rise of Real World Assets (RWAs) in the crypto ecosystem is accompanied by new opportunities, but also profound tensions with the principles that founded decentralised finance. While RWAs are attractive for their ability to connect traditional assets to blockchain, they are overwhelmingly based on centralised structures. BlackRock's BUIDL fund, emblematic of this trend, operates with a traditional custodian (BNY Mellon), an auditor (PwC) and strict regulatory governance. This model effectively imposes trust in institutions, a far cry from the permissionless logic of DeFi.
This centralisation has direct implications. A tokenised asset can be frozen, censored or revoked by a regulator or issuer, despite being registered on a public blockchain. In a tense geopolitical context and in the face of a potential tightening of regulations, the risk of seeing these products suspended or inaccessible remains real. The promise of a more open system then comes up against the constraints of the off-chain world they claim to be overtaking.
This dynamic raises a strategic question: can DeFi remain decentralised if the added value it absorbs comes from traditional infrastructures? Today, more than 80% of tokenised assets (excluding stablecoins) are issued by a handful of players - BlackRock, Franklin Templeton, and Ondo, which itself relies on BlackRock products. The risk of concentration is real, with increasingly asymmetrical balances of power within the ecosystem.
Another limitation: accessibility. While tokenisation was supposed to open up investment to a wider audience, the reality is quite different. The BUIDL fund is only accessible to qualified investors. Many RWA protocols require strict KYC, high investment thresholds and a regulatory framework that is still difficult for retail investors to understand. Retail is still largely sidelined, and a genuine technological and legal bridge still needs to be built to allow equitable access.
Two other structural weaknesses deserve attention: regulatory fragmentation and the weakness of secondary markets. RWAs may circulate globally, but their legal recognition remains local. An asset tokenised in the United States may be unrecognised, or even illegal, in another country. This heterogeneity hampers the scalability of the sector.
At the same time, the liquidity of these products is still limited. Unlike native cryptos, RWAs have a nascent secondary market. In the event of a rapid exit, investors may not find a counterparty or may have to sell at a loss. This problem is particularly acute for illiquid asset classes such as real estate or private debt.
Another major vulnerability: dependence on the US dollar. As at 14 April 2025, more than 99% of stablecoins were backed by the USD, and almost all RWAs were linked to dollar-denominated assets. In the event of a fall in the currency, losses for non-US investors could be significant. Between February and April 2025, the euro appreciated by almost 12% against the dollar. As a result, whether we are talking about USDC, USDT or shares in the BUIDL fund, the real value for a European investor has deteriorated mechanically.
Alternatives are appearing, such as Circle's EURC or RWA projects in euros, but these are still confidential. Geographic and monetary diversification remains one of the key challenges if RWAs are really to serve as a foundation for more global and inclusive finance. For the time being, they remain largely anchored in the logic and dependencies of the US economy.
