Blockchain-Based Asset Ownership Revolution Hits $39 Billion Mark
The concept of asset ownership has undergone significant changes with the advent of blockchain technology. In 2021, the total active market capitalization (TaMcap) on DeFi Llama was just $0, but by September 3rd, it had reached $349.25M, with precious metals and carbon credits making up a significant portion of the active market capitalization.
The first test phase involved representing physical commodities like gold as tokenized claims, which proved successful due to their standardized units and globally recognized value. However, for carbon credits, it was a different story, as they were merely environmental claims that existed traditionally, and they were able to prove that an asset does not need to be moved on-chain for its economic claim to be represented there.
By 2022, the RWA market had expanded significantly, with over $800M in TaMcap, a +400% increase from the previous year. Private credit onchain became a thing, with several protocols like Maple and Goldfinch trying to bring credit markets onchain, while Centrifuge walked the path of loans.
In 2023, crypto native yields were taking a dive, but tokenized treasuries brought attractive yields for users, with a 752% increase in assets onchain becoming economically attractive. The infrastructure was also improved, with several products coming in with different approaches, such as Matrixdock's STBT and Backed's blB01.
In the subsequent years, institutions began to validate infrastructures, with Franklin Templeton introducing P2P transfers of BENJI between eligible shareholders, transferability entered the game. By 2025, the tokenized market had become so broad, with products like Bonds, precious metals, private credit, crypto digital assets, and private equity spearheading the market.
However, this growth in the tokenized market has revealed its limitations, particularly in real estate, where a token can function while the real-world asset experiences operational problems. The relationship between ownership, transferability, and composability is still evolving, with questions remaining about the potential for full decentralization and elimination of intermediaries.