RWA Adoption Surges as TradFi Firms Move Assets On-Chain

Traditional finance is embracing real-world assets (RWA) and moving to on-chain rails. RWA deposits have tripled to $7.4 billion in Q2 2026, according to recent data. This growth can be attributed to the increasing adoption of tokenized funds, which are used for collateral movement and settlement efficiencies.

Banks such as J.P. Morgan Asset Management and BNY are building regulated on-chain rails despite facing legal, liquidity, and technical risks. These networks allow for the efficient transfer of assets across markets and time zones, reducing the need for intermediaries and lowering costs.

However, adoption is not without its challenges. The SEC has stated that offers and sales of tokenized securities require registration unless an exemption applies. Europe's DLT pilot regime for blockchain-based trading and settlement has been slow to take off, with only three authorized market infrastructures in place as of May 31, 2025.