Tokenized RWA Market Tops $38.86 Billion, Focus Shifts to Liquidity

The market for tokenized real-world assets (RWA) has exceeded $38.86 billion, according to a recent report by Castle Labs.

Analysts say that while this growth is significant, the next task for the industry is to improve liquidity and usability of these tokens rather than expanding the number of listed assets.

Castle Labs notes that tokenized assets can only truly create value if they can be easily traded across exchanges, used as collateral for loans, and have deep liquidity. This would allow both institutional investors and DeFi protocols to utilize them effectively.

The current market structure has Ethereum at the largest blockchain with $17.3 billion in RWA tokens, followed by BNB Chain with $5.6 billion, and Solana with $4.3 billion.

However, this fragmentation is seen as a weakness, weakening liquidity for tokenized assets. The report also notes that supply itself is no longer the core issue, with many mainstream institutions already providing access routes to tokenized assets.