Tokenized real-world assets hit $31.4 billion on fast institutional growth

The market for tokenized real-world assets has surged to $31.4 billion over the past year, driven by rapid institutional adoption that is transforming blockchain-based financial instruments from experimental products into core market infrastructure. The sector opened the year near $21.5 billion, reflecting one of the fastest growth phases since regulated blockchain finance emerged. The acceleration has been marked by a shift in focus from speculative crypto assets to low-risk, yield-bearing instruments that integrate with traditional financial systems.

U.S. Treasury products account for nearly half of the tokenized asset market, reflecting institutional demand for collateral and yield-bearing instruments. Commodity-backed assets, led by gold tokens, represent around $5 billion, while blockchain-based equities have expanded from below $300 million in early 2025 to nearly $1.5 billion. Major institutional players such as BlackRock, Ondo Finance, and Centrifuge have continued to drive the market’s expansion. BlackRock’s BUIDL fund holds approximately $2.54 billion in assets, and Ondo Finance’s USDY token has reached roughly $2.14 billion.

The growth has occurred even as broader...