Greg Miller
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JPMorgan Says RWA Tokenization Is Stuck at $25B, Adoption Still Slow
Tokenizing real-world assets (RWAs) was once seen as a big step to connect crypto with traditional finance. But according to JPMorgan’s new report, the progress has been much slower than expected.
The total RWA tokenization market is still stuck at $25 billion, and most of the activity comes from crypto-native companies, not big traditional banks or funds.
Traditional Finance Isn’t Jumping In
Nikolaos Panigirtzoglou, a strategist at JPMorgan, said traditional investors don’t yet see a strong reason to use tokenized assets. There’s also very little proof that banks or customers are moving money from normal bank deposits to blockchain-based deposits.
Even though JPMorgan has its own RWA projects, the bank admits adoption is far below expectations. If the sector doesn’t attract more traditional finance players, it could remain small.
Crypto Industry Keeps It Alive
Right now, most investments in RWA tokenization come from within the crypto space, like blockchain companies and venture capital firms.
Meanwhile, interest from big finance seems to be slowing. For example, BlackRock’s BUIDL fund saw $0.6 billion in assets leave between May and August.
ETF expert Eric Balchunas pointed out that tokenized private credit makes up $15 billion of the market, but U.S. ETFs get that same amount of investment in just a week.
Regulators Target Stablecoins
While RWAs struggle for growth, regulators are putting more focus on stablecoins. South Korea’s Financial Intelligence Unit has started a year-long review of stablecoins’ risks, especially around money laundering.
This study, with a budget of 50 million won, will run until December 2025. It will look at how stablecoins are used for both domestic payments and international transfers. The goal is to update the law and bring stronger oversight to the sector.
#RWA #JPMorgan #GregLens #BinanceSquareFamily
The total RWA tokenization market is still stuck at $25 billion, and most of the activity comes from crypto-native companies, not big traditional banks or funds.
Traditional Finance Isn’t Jumping In
Nikolaos Panigirtzoglou, a strategist at JPMorgan, said traditional investors don’t yet see a strong reason to use tokenized assets. There’s also very little proof that banks or customers are moving money from normal bank deposits to blockchain-based deposits.
Even though JPMorgan has its own RWA projects, the bank admits adoption is far below expectations. If the sector doesn’t attract more traditional finance players, it could remain small.
Crypto Industry Keeps It Alive
Right now, most investments in RWA tokenization come from within the crypto space, like blockchain companies and venture capital firms.
Meanwhile, interest from big finance seems to be slowing. For example, BlackRock’s BUIDL fund saw $0.6 billion in assets leave between May and August.
ETF expert Eric Balchunas pointed out that tokenized private credit makes up $15 billion of the market, but U.S. ETFs get that same amount of investment in just a week.
Regulators Target Stablecoins
While RWAs struggle for growth, regulators are putting more focus on stablecoins. South Korea’s Financial Intelligence Unit has started a year-long review of stablecoins’ risks, especially around money laundering.
This study, with a budget of 50 million won, will run until December 2025. It will look at how stablecoins are used for both domestic payments and international transfers. The goal is to update the law and bring stronger oversight to the sector.
#RWA #JPMorgan #GregLens #BinanceSquareFamily
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