The Rise of Tokenised RWAs: Bridging TradFi and DeFi

An accelerating movement is unfolding that sees real-world assets (RWAs) tokenised so that they can circulate across public blockchains, which means that the centuries-old framework of settlement desks and transfer agents is giving way to programmable ledgers accessible round the clock.

Research delivered by RedStone, Gauntlet, and RWA.xyz records that the aggregate market value of tokenised real-world assets reached twenty-four billion United States dollars in June 2025, which represents a three-hundred-eighty per cent expansion since 2022, and which Standard Chartered projects may grow to thirty trillion by 2034. (CoinDesk, RedStone blog)

Binance Research confirms that sector capitalisation grew two-hundred-sixty per cent during the first half of 2025, which illustrates that favourable macro yields and infrastructure maturity have converged to attract institutions seeking on-chain liquidity. (The Defiant)

The same RedStone study indicates that private credit now commands fourteen billion dollars and that tokenised United States Treasury securities exceed seven billion, so that risk-adjusted yield instruments form the majority of supply. (RedStone blog, FF News)

BlackRock’s USD Institutional Digital Liquidity Fund, which the market recognises as BUIDL, migrated to Solana in March 2025 and which already manages roughly one-point-seven billion dollars, showing that global asset managers acknowledge decentralised settlement. (CoinDesk)

Specialised platforms such as YieldGuard then allocate professional deposits across multiple tokenised Treasury wrappers so that investors receive net yields with daily rebalancing, because the aggregator reads on-chain Proof of Reserve feeds and enforces issuer caps through transparent smart-contract logic.

The Galaxy Digital report details that protocols such as MakerDAO, Frax, and Aave incorporate real-world assets for collateral and treasury management so that nearly half of the circulating DAI stablecoin is now backed by off-chain instruments, which embeds traditional yield streams inside decentralised credit markets. (Galaxy)

Developers have introduced oracle frameworks, such as those pioneered by RedStone, that calculate net-asset value and liquidity parameters because traditional real-time price feeds cannot capture coupon accruals, settlement lags, and corporate actions which affect token valuation. (RedStone blog)

In Europe the Markets in Crypto-Assets Regulation that entered into force on one January 2025 establishes harmonised classifications for electronic-money and asset-referenced tokens, which provides issuers with a single passport across twenty-seven member states and which lifts legal uncertainty for investors.

The United Kingdom complements that approach with a Digital Securities Sandbox that the Bank of England and the Financial Conduct Authority launched in September 2024, which permits integrated trading and settlement venues to test tokenised instruments under real-market conditions. (Bank of England)

Challenges remain because liquidity can fragment across chains and wrappers, which implies that efficient routing engines and disclosure standards will decide which projects gain trust; moreover oracle governance, custodial risk, and legal enforceability of on-chain claims require continuous oversight.

Analysts widely expect that broader tokenisation of money-market funds, private equity, and infrastructure debt will proceed so that tokenised real-world assets may eclipse stablecoins as the dominant bridge between traditional finance and DeFi, and that the coming cycle of programmable cash flows and composable compliance primitives will draw trillions of capital onto public ledgers.