RWA On-chain Finance Report: 2025 H1 Market Overview
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RWA On-chain Finance Report: 2025 H1 Market Overview
With DeFi integration through regulated frameworks, RWAs have entered a new growth phase, transforming historically illiquid assets into composable financial primitives.
Navigating Web3 tides with focused insights
On June 26, 2025, RedStone Oracle released the "Real-World Assets in On-chain Finance Report," further expanding into the RWA ecosystem. RedStone's latest report highlights the significant growth and transformative potential of real-world asset (RWA) tokenization within the blockchain ecosystem. Since reaching just $5 billion in 2022, the RWA market has surged to over $24 billion by mid-2025, firmly establishing itself as the second-fastest-growing sector in cryptocurrency after stablecoins.
The report notes that institutional adoption has transitioned from pilot phases to large-scale deployment—driven by maturing infrastructure and support from major financial institutions including BlackRock, JPMorgan Chase, and Franklin Templeton. As RWA tokenization increasingly serves as a bridge between traditional finance and blockchain, innovative compliant DeFi integrations and sophisticated pricing oracles led by companies like RedStone are laying the foundation for an efficient, transparent, and liquid global asset market.
Private credit stands out as the primary growth driver, with industry forecasts suggesting that tokenized assets could account for up to 30% of total assets by the early 2030s. RedStone’s insights reveal a promising outlook for unlocking trillions of dollars in value through blockchain technology.
Click the link below to read the full report:
https://blog.redstone.finance/2025/06/26/real-world-assets-in-onchain-finance-report/
Table of Contents
1. Key Takeaways 4
Featured Projects and Organizations 5
2. What Are RWAs? 7
A Brief History of RWAs and Tokenization 7
Pre-blockchain Attempts 7
Why Blockchain Changed the Game? 8
Recent Momentum: A Perfect Storm 9
Why Do Dollars and Treasuries Dominate the RWA Space? 10
3. Tokenization 11
Mainstream Platforms Compete Through Innovation and Scale 12
Treasury Markets: Explosive Institutional Demand 13
Private Credit: Emerges as the Largest Segment in RWA Tokenization 14
Commodities Tokenization: Gold-Dominated but Diversifying 16
The Rise of Equity Tokenization Markets 16
Crypto Exchanges Drive Convergence Narratives 17
Global Wave of Private Equity Tokenization 17
4. RWA+DeFi: Integration, Challenges, and Breakthroughs 18
How to Institutionalize DeFi? 18
Ethena's USDtb: Leveraging BUIDL to Drive Institutional Adoption19
Maple Finance: Accelerating On-chain Institutional Lending 21
Morpho v2: DeFi Learns to Speak the Language of Institutions 22
Pendle Citadels: Targeting the Multi-Trillion Dollar Institutional Yield Market 23
Spark Protocol: A Paradigm of Financial Vertical Integration 23
Horizon: AAVE’s Path Toward RWA DeFi 25
Institutional DeFi Ecosystem on Solana 25
The sTokens Revolution: Bringing Tokenized Assets Into DeFi 26
What Are sTokens? How Do They Work? 27
Legal Frameworks for Compliant Tokenization 27
Advanced Technical Architecture for High-End Tokenized DeFi 27
Outlook on Future Use Cases 27
Leveraged RWA Positions in DeFi 28
Bringing RWAs Into DeFi: Technical and Structural Challenges 29
Limitations Within DeFi Itself 29
Legacy Constraints From Traditional Finance 29
Breakthrough Solutions and Market Infrastructure 30
Gauntlet’s RWA Growth Strategy 30
Success Case: Apollo ACRED Strategy 30
Future Expansion Plans 31
Evolution of Next-Gen RWA Strategies 31
Market Growth Outlook 32
RWA Oracles: Enablers of On-chain Markets 32
The Challenge of RWA Oracles: Beyond Real-Time Pricing 33
RWA vs. Traditional DeFi Oracles: A New Pricing Paradigm 33
Liquidation Impact and Risk Transmission Mechanisms 34
What Is the Ultimate Form of RWA Oracles? 34
5. Comparative Analysis of Leading RWA Blockchains 35
RWA Adoption Across Blockchain Networks 35
Ethereum: The Institutional Standard 35
ZKSync Era: A Stronghold for Private Credit 37
Solana: The High-Performance Challenger 38
Aptos: Another Institutional Standard 39
Avalanche: Center for Alternative Investments 39
XRP Ledger: A Regulated Newcomer 40
Plume: Pioneer in Retail-Focused RWA 41
6. Underrated RWA Chains: Backed by Institutional Power 43
Canton Network: The Silent Giant of Institutional Finance 43
DTCC AppChain: Wall Street Goes On-chain 44
Stellar: A Financial Bridge to Tokenized Reality 45
JPMorgan and Kinexys: Real-World Applications of Institutional Blockchains 45
Ondo Chain: A Full-Stack RWA Strategic Platform 46
Dark Horse Breakout: Hyperliquid 46
7. What Is the Data-Driven Outlook for RWAs? 47
Introduction47
Tokenized U.S. Treasuries 49
Overview 50
Outlook 51
Private Credit 51
Overview 53
Outlook 53
Institutional Funds and Alternative Assets 54
Overview 55
Outlook 56
8. Largest Institutions and Banks in Crypto 56
X. Conclusion 58
Z. Authors 59
Y. References 60
Key Takeaways:
● The real-world asset (RWA) tokenization market has grown from $5 billion in 2022 to over $24 billion by June 2025 (a 380% increase), making it the second-fastest-growing sector in crypto after stablecoins. While stablecoins technically represent tokenized fiat currency, we exclude them from this report as our research team is already conducting in-depth analysis on that topic. Industry projections suggest that between 10% and 30% of global assets could be tokenized by 2030–2034. RWAs are becoming the bridge connecting over $400 trillion in traditional financial assets to blockchain—more than 130 times larger than today’s ~$3 trillion crypto market.
● From 2024 to 2025, asset tokenization has steadily shifted from pilot experiments to large-scale institutional adoption. By December 2024, the market for tokenized real-world assets (excluding stablecoins) had reached $15.2 billion and continued growing, surpassing $24 billion by June 2025—an impressive 85% year-over-year growth rate.
● The current wave of institutional adoption reflects years of accumulated infrastructure development, culminating in broad production-level deployment. Major financial institutions such as BlackRock, JPMorgan, Franklin Templeton, and Apollo have moved beyond testing and into scaling applications. Governments are also increasingly viewing blockchain as critical infrastructure for modernizing legacy financial systems and addressing structural macroeconomic challenges. With improving regulatory clarity, RWAs are now experiencing accelerated growth.
● Through regulated DeFi integration, RWAs have entered a new phase of expansion, transforming historically illiquid assets into composable financial primitives. Platforms like Ethena, Maple, Spark, Morpho, Pendle Citadels, Drift Institutional, Kamino, and Securitize’s sTokens enable institutional assets to access DeFi liquidity while maintaining compliance—unlocking yield amplification and secondary market opportunities previously unattainable in traditional finance.
● As of June 2025, private credit has become the largest segment in RWA tokenization, valued at $14 billion, reflecting strong institutional interest in native blockchain-based credit markets. Tokenization addresses key industry constraints by reducing operational costs and improving access and distribution, while enabling robust secondary market liquidity—all while preserving institutional underwriting standards and offering high-yield opportunities previously available only to accredited investors.
● RWA oracles represent a fundamental shift requiring entirely new technical frameworks—specialized providers like RedStone are leading the way in developing complex pricing mechanisms essential for institutional adoption. Unlike DeFi oracles that provide real-time price data, RWA pricing requires integrating net asset values (NAV), regulatory compliance, and liquidity adjustments into a unified architecture—providing the critical infrastructure needed to integrate trillions of dollars in tokenized assets into decentralized finance (DeFi).
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