RWA Gaining Demand as Bitcoin Stagnates, Institutions Embrace Tokenization**
Amid Bitcoin (BTC) stagnation and global market uncertainty, real-world assets (RWA) are gaining traction among investors seeking stability and returns. RWA tokenization, which involves minting financial products and physical assets such as property and blockchain, increases investor accessibility and trading opportunities.
Traditional financial institutions are starting to look to tokenized assets as a bridge to *Decentralized Finance* (DeFi), driven by the search for digital asset investments with predictable returns. This is evidenced by the involvement of major financial institutions such as BlackRock and JPMorgan in tokenization.
BlackRock tokenized one of its funds and invested in a tokenization company. These institutions are leveraging blockchain technology to improve asset management, shorten settlement periods, and increase overall market productivity.
Experts predict substantial growth in the RWA market, with the potential to reach US$500 billion by 2025. They attribute this growth to increased institutional adoption and the development of blockchain infrastructure in traditional finance.
Interestingly, a 1-2% shift of the $450 trillion global asset market to blockchain-based RWA could drive significant growth by 2025. Real-world asset tokenization is expected to continue to grow, integrating with the decentralized finance ecosystem and traditional markets.
# Image Source: Medium
