Tokenized Real-World Assets May Unlock $400T TradFi Market, Says Animoca

Tokenization of real-world assets (RWAs) could unlock a $400 trillion traditional finance market, according to new research from Web3 digital property firm Animoca Brands.

Key Takeaways:

• Tokenized RWAs could tap into a $400 trillion TradFi market, with $26.5B already tokenized in 2025.
• Private credit and U.S. Treasurys dominate, while Ethereum holds 55% of the market share.
• Growth may benefit projects like ETH and Chainlink, with interoperability seen as key to long-term success.

In an August report, Animoca researchers Andrew Ho and Ming Ruan said the global market for private credit, treasury debt, commodities, stocks, alternative funds, and bonds represents a vast runway for growth.

“The estimated $400 trillion addressable TradFi market underscores the potential growth runway for RWA tokenization,” they wrote.

The tokenized RWA market is currently valued at $26.5 billion, an all-time high and up 70% since the start of 2025, industry tracker RWA.xyz reported.

The sector is still a fraction of its potential size, but Animoca argues that momentum is building as institutions show increasing confidence in onchain financial products.

Private credit and U.S. Treasurys dominate the space, accounting for nearly 90% of tokenized value.

Ethereum leads the RWA ecosystem with a 55% market share and $156 billion in onchain assets, expanding to 76% when layer-2s like Polygon, ZKsync Era, and Arbitrum are included.

Animoca said Ethereum’s lead reflects its liquidity, security, and developer base, though purpose-built blockchains are emerging challengers.

Animoca also noted that the growth of tokenized assets could benefit related crypto projects.

The on-chain RWA market is up 57.9% YTD, with the size now estimated at $24.8 billion. In our latest report, we explore:

What are the main financial asset classes and their market share?

What are the stages in the value chain, and how is value captured?

Who are the… pic.twitter.com/5EHbAobq46

Ether (ETH) and Chainlink (LINK), an oracle provider critical to RWA infrastructure, have both outperformed the broader crypto market in recent weeks.

“There is a strategic race to build full-stack, integrated platforms,” the researchers said, adding that long-term value will likely accrue to those controlling the asset lifecycle.

Interoperability, they argued, will be key to future success as RWA activity unfolds across both public and private blockchains.

Earlier this month, Animoca launched its own RWA marketplace, NUVA, signaling the firm’s push to capture a share of the sector’s rapid growth.

The market for tokenized RWAs could grow to $16 trillion by 2030, according to the 2025 Skynet RWA Security Report.

Tokenized U.S. Treasuries alone are projected to reach $4.2 billion this year, with short-term government bonds driving most of the activity.

Institutional interest is accelerating, with major banks, asset managers, and blockchain-native firms exploring tokenization for yield and liquidity management.

Skynet highlighted emerging use cases across private credit, trade finance, and money market funds, noting that regulatory frameworks in Hong Kong, Singapore, and the U.S. could further support adoption.

The report also flagged key hurdles, including thin secondary market liquidity, inconsistent legal treatment across jurisdictions, and the absence of standardized risk controls.

Cybersecurity and smart contract risks remain a concern, with Skynet urging use of regulated custodians and stronger security infrastructure.

While tokenization is gaining ground in capital markets, retail access remains limited.

Skynet said bridging this gap will require regulated intermediaries and simplified on-ramps, but with clear infrastructure and regulation, the sector could achieve its $16 trillion forecast by the end of the decade.

The post Tokenized Real-World Assets May Unlock $400T TradFi Market, Says Animoca appeared first on Cryptonews.