The tokenization of real assets (RWA) is still not widely accepted, with a market capitalization of only around 25 billion USD, far below initial expectations and mainly attracting interest from cryptocurrency businesses.
Although once seen as a bridge between cryptocurrency and traditional finance, the tokenization of real assets is gradually stagnating, while global regulators are increasing controls over Stablecoin to prevent money laundering risks.
MAIN CONTENT
The tokenization of real assets (RWA) has not exploded, with a market capitalization of only 25 billion USD, mainly due to the lack of interest from TradFi investors.
Investment in RWA is concentrated in the cryptocurrency community; traditional finance is beginning to shrink.
Global regulators, such as South Korea, are increasing supervision of Stablecoin, pushing for stricter management standards.
What is the tokenization of real assets (RWA)?
Tokenization of real assets (RWA) is the process of bringing physical assets such as real estate, stocks, and bonds onto Blockchain in the form of Tokens, aiming to digitize and increase liquidity.
The tokenization of real assets is expected to create a bridge between the world of traditional finance and the cryptocurrency market, making real assets easier to invest in and trade globally. However, according to many reports, the level of practical application is far from the expected potential.
Does the market for the tokenization of real assets really have potential?
Although previously forecasted as a turning point bringing Blockchain technology closer to traditional finance, the current market for the tokenization of real assets is still modest with a market capitalization of only 25 billion USD, equivalent to the weekly ETF flows in the US.
Data from JPMorgan's report indicates that the market capitalization of RWA has remained stagnant, hardly changing for many months. Traditional investors (TradFi) still do not see added value or compelling reasons to convert assets into tokenized forms on Blockchain.
"The total value of tokenized assets is still very small. This disappointing result shows that traditional investors do not yet see the necessity for tokenization at this time."
Nikolaos Panigirtzoglou, JPMorgan strategist, Bloomberg 2025
This data becomes even more noteworthy as JPMorgan itself has led many large-scale tokenization pilot projects. However, even with the participation of large organizations, the market has not grown explosively as expected.
Why are traditional financial investors not enthusiastic about the tokenization of real assets?
According to analysis from JPMorgan, investors and traditional banks still do not feel a clear motivation to convert traditional assets to Blockchain or use tokenization solutions.
One of the main reasons is the legal barriers, technology infrastructure, market habits, and the lack of common standards. Additionally, the management model of assets in physical form or books is still tightly controlled and more familiar, thus the reluctance to change may influence.
"Currently, there is also no clear evidence that banks or clients are transferring from traditional deposits to tokenized deposits via Blockchain..."
Nikolaos Panigirtzoglou, JPMorgan strategist, Bloomberg 2025
According to Messari's analysis (2025), most activities of converting real assets to Blockchain have so far taken place within cryptocurrency enterprises, unable to spread to the public or become flagship products of large financial organizations.
Are cryptocurrency investors still actively leading the market for the tokenization of real assets?
Despite the declining interest from traditional finance, most of the investment resources in the tokenization of real assets at present originate from the cryptocurrency community and venture capital funds in the industry.
Venture capital funds, Blockchain projects, and startups building tokenization solutions are the main "drivers" maintaining the vitality of this market, from providing liquidity, expanding products to researching and testing applications.
Data shows that the Private Credit (tokenized private lending) segment alone is worth about 15 billion USD in market value. However, this number is only equivalent to the amount of US ETF money flowing in weekly, indicating that the competition is still very low compared to other popular financial products.
"In reality, I am not yet convinced that the tokenization of real assets can compete with the superior allure of ETFs."
Eric Balchunas, ETF analyst at Bloomberg, X.com 2025
Although many large companies like BlackRock have announced tokenized funds (e.g., BUIDL Fund), the drop of nearly 0.6 billion USD in assets in just two months (due to data published by BlackRock) shows that investment interest and capital flows are leaving this sector.
ETFs and the tokenization of real assets: How attractive are the two investment channels?
Compared to traditional ETFs, the tokenization of real assets has not created equivalent attraction among retail investors.
ETFs in the USA can attract 15 billion USD per week, while the total global RWA value has only approached that level after many years of implementation. Factors such as legal transparency, liquidity, and the stability of disbursement processes allow ETFs to maintain a significant advantage over emerging Blockchain solutions.
ETF index (USA) tokenization of real assets (RWA) Market capitalization 8.3 trillion USD (2025, Statista) 25 billion USD (JPMorgan, 2025) Weekly inflow About 15 billion USD Negligible Legal & governance Strict, clear, transparent Not unified, still new, many barriers Investor accessibility Global reach Mainly in the cryptocurrency community
Market reports also show that only with strong participation from banks and traditional investment funds can RWA create momentum.
What are the major barriers preventing the tokenization of real assets from breaking through?
Legal issues, regulations to protect investors, asset valuation standards, and incomplete Blockchain technology infrastructure still represent significant barriers.
Both financial organizations and regulatory agencies are concerned about transparency, control, anti-money laundering capabilities, and protecting customer rights when transferring real assets into digital form (Token).
According to Cointelegraph's assessment (2025), most RWA projects are still operating in experimentation or small scale, with many cases facing legal obstacles or being halted due to not meeting audit/fraud prevention standards.
"Only when security solutions, legal compliance, and asset risk control capabilities are perfected can the tokenization of real assets have a chance to spread widely."
World Economic Forum report, Q1/2025
Experts believe that the RWA market can only truly develop robustly if governments build specific legal frameworks and ensure close coordination between Blockchain technology and traditional supervisory machinery.
The traditional financial market (TradFi) withdraws, does cryptocurrency keep RWA alive?
Both capital flows and interest from traditional financial institutions are declining, while the cryptocurrency community remains the main driving force behind RWA.
For example, the BUIDL Fund (BlackRock) was once expected to be a major boost, but has lost 0.6 billion USD in assets in just the last 3 months – according to data cited by Bloomberg on August 7, 2025.
When confidence in the ability to generate yield, protect rights, and transparency of tokenization has not reached traditional standards, large capital flows remain stagnant waiting for clear legal signals and sufficiently safe technology.
Why are TradFi investors still hesitant with RWA?
Risks related to valuation, asset custody, lack of transparency in legal frameworks, and reluctance towards new technology are the main causes.
According to a Deloitte survey (2025), 71% of leaders in large financial organizations still prioritize traditional governance and trading solutions before considering a transition to digital solutions on Blockchain.
In addition, the safety of Blockchain infrastructure, the issue of managing secured assets, and the ability to resolve disputes… have not yet met the standards of existing financial systems.
Houseview: Does RWA have a breakthrough future or is it just a "waiting dream"?
Evidence from the data shows that RWA is struggling on its journey to become a major bridge between cryptocurrency and traditional finance, despite the unchanged expectations for innovation in the financial sector.
Experts from JPMorgan and Bloomberg agree that if real participation from the TradFi sector is not attracted, this market is unlikely to achieve large-scale breakthroughs.
"From a development perspective, if the traditional financial sector does not accompany it, the market for the tokenization of real assets can only develop horizontally within the cryptocurrency community."
Nikolaos Panigirtzoglou, JPMorgan, Bloomberg 2025
This also implies that no matter how attractive the technological solution is, it still must converge on legal factors, standardization, flexible regulation, and clear rights protection to be capable of conquering traditional investors, institutional blocks, and the retail market.
Stablecoin and what risks are prompting global regulators to increase oversight?
Alongside the development of the tokenization of real assets, Stablecoins – which serve as liquidity support for the cryptocurrency and RWA markets – are also under the scrutiny of global regulators, notably South Korea.
In early August 2025, the Financial Intelligence Unit of South Korea (FIU) announced the launch of an in-depth study on the money laundering risks associated with Stablecoin. The project covers both domestic payment activities and cross-border remittances, with a total budget of 50 million won, implemented until the end of 2025.
"Strengthening scrutiny and improving the legal framework according to global standards is an important step to ensure market stability, protect investors, and prevent fraud and money laundering through Stablecoin."
FIU South Korea report, News1, 8/2025
This move clearly reflects concerns about the lack of synchronization, the risk of using Stablecoin for illegal money transfers, and shows that many countries are proactively completing legal frameworks to limit risks as the market expands.
What expectations are there from global Stablecoin management initiatives?
Financial organizations and professional investors expect that stronger oversight of Stablecoin will help clarify capital flows and protect the legitimate rights of investors.
When Stablecoin platforms are more strictly regulated, standardizing public information, and securing asset valuations… it will reduce risks of fraud and abuse, while also creating a safer environment for financial innovation experiments.
According to a report by BIS (Bank for International Settlements) 2025, the collaboration of countries to build a global Stablecoin standard framework could help increase trust and expand practical applicability in both the RWA ecosystem and the digital financial services market.
RWA and the future of the digitized asset market from a global perspective?
Although RWA has not met expectations for scale, experts believe that the demand for integrating real assets onto Blockchain still holds breakthrough potential if technological and legal barriers are overcome and investor protection is ensured.
The World Economic Forum report (Q1/2025) emphasizes: "The digital asset revolution may still unfold slowly but will continue to develop in depth and gradually expand as financial institutions, managers, and technology coordinate harmoniously."
The key to the future lies in interdisciplinary collaboration, completing a "dual" legal framework, and synchronizing between countries to develop products that meet the strictest standards for safety, investor rights, and fraud prevention.
Frequently asked questions about the tokenization of real assets and Stablecoin
What is the tokenization of real assets?
This is the act of converting physical assets into Tokens on Blockchain to digitize, increase liquidity, and expand global investment opportunities.
Why is the market capitalization of RWA only around 25 billion USD?
Due to the lack of motivation from traditional investors, many legal, technological, and governance barriers remain, so the market cannot fully explode.
Who are the main investors in the tokenization of real assets?
The community and venture capital funds in the cryptocurrency sector are the main groups providing capital and developing RWA products today.
Why do ETFs have superior appeal compared to RWA?
ETFs are managed transparently, with clear legal frameworks, easily accessible to the public, and high liquidity, while RWA still lacks many of these elements.
What does Stablecoin have to do with RWA?
Stablecoin provides liquidity, a payment bridge for RWA platforms. Risks related to Stablecoin can affect the entire ecosystem of the tokenization of real assets.
What legal risks are noteworthy with RWA and Stablecoin?
The lack of clear legal standards, risks of fraud, money laundering, and insufficient protection for customer rights… are the main risks of both areas.
What will the long-term development prospects of RWA be?
Only when legal, technological, and supervisory systems are strong enough, and there is synchronized participation from traditional finance, can RWA become a key trend.
Source: https://tintucbitcoin.com/jpmorgan-canh-bao-rwa-token-hoa-25-ty/
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