The market for tokenizing real-world assets (RWAs) on blockchains is experiencing explosive growth, fueled by a surge in user activity and investment in tokenized treasuries. Data from blockchain analytics firms Messari and DeFiLlama reveals a significant rise in both the total value locked (TVL) in RWA protocols and the number of active users.
Real-world asset tokenization involves creating digital tokens on a blockchain to represent ownership of real-world assets. This process offers several potential benefits, including increased fractional ownership, improved liquidity, and potentially more efficient transactions.
As of April 26, 2024, the total value locked in RWA protocols has reached nearly $8 billion, according to Messari. This figure, which excludes fiat-backed stablecoins, represents a substantial jump of almost 60% since February 2024. DeFiLlama reports a slightly lower figure of $6 billion but still indicates a monumental growth of around 700% since the beginning of 2023.
This growth is attributed in part to a “market preference for debt-based, high-yield investments,” according to Messari. The TVL figure encompasses a variety of assets, including commodities, securities, and real estate tokenization protocols.
There’s also been a notable rise in the number of active users on RWA protocols, suggesting growing interest from retail investors. Data from Dune Analytics shows a surge in active users since February 2024, particularly for protocols focused on specific asset classes.
Certain sectors within the RWA tokenization market are experiencing particularly strong growth. Platforms like Toucan and KlimaDAO (focused on carbon markets) and Propy (real estate tokenization) have seen a significant influx of active users.
Another trend gaining traction is the rise of tokenized treasuries. With high inflation and interest rates creating a high-yield investment environment in the United States, investors are increasingly turning to tokenized U.S. treasuries and bonds. According to RWA.xyz, a record $1.29 billion is currently locked in these assets, representing an 80% increase since the beginning of 2024. Protocols like Securitize and Ondo are at the forefront of this growth, driven by the success of large-scale funds like BlackRock’s BUIDL.
