Tokenized real-world assets may ultimately represent trillions in traditional finance assets within a multichain future, as noted by Animoca.
“The estimated $400 trillion addressable TradFi market highlights the potential for growth in RWA tokenization,” stated researchers Andrew Ho and Ming Ruan in an August research paper from Web3 digital property firm Animoca Brands.
The research revealed that the tokenized real-world asset (RWA) sector currently represents only a small portion ($26 billion) of the total addressable market, which exceeds $400 trillion.
These asset classes comprise private credit, treasury debt, commodities, stocks, alternative funds, and global bonds.
There is an ongoing “strategic race to develop full-stack, integrated platforms” among large asset managers, with long-term value accruing to those who can “manage the asset lifecycle,” the researchers noted.
RWA value reaches an all-time high
The emerging RWA tokenization market is now at an all-time high of $26.5 billion, having surged 70% since the start of the year, according to industry tracker RWA.xyz.
This indicates “clear momentum and growing institutional confidence,” the researchers emphasized.
The current RWA landscape is primarily dominated by two categories: private credit and US Treasurys, which together account for nearly 90% of the tokenized market value.
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RWA’s future is multichain, not limited to Ethereum
Ethereum leads the RWA tokenization market with a 55% market share, inclusive of stablecoins, and boasts $156 billion in on-chain value.
When including Ethereum layer-2 networks such as ZKsync Era, Polygon, and Arbitrum, that share increases to 76%, according to RWA.xyz.
“Its leading position likely stems from its security, liquidity, and the broadest ecosystem of developers and DeFi applications,” the researchers observed.
The expansion of RWA tokenization may spur increased demand for associated crypto assets like Ether (ETH), which reached an all-time high on Sunday, and oracle provider Chainlink (LINK), both of which have enjoyed gains exceeding those of the broader crypto market in recent weeks.
Nonetheless, the researchers mentioned that RWA tokenization efforts are “developing across a multichain ecosystem that includes both public and private blockchains,” asserting that Ethereum’s current advantage is being challenged by “high-performance and purpose-built networks, signaling that interoperability will be crucial for success.”
Earlier this month, Animoca Brands introduced its own tokenized RWA marketplace known as NUVA.
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