That growth is not subtle. The sector has nearly quadrupled from roughly $6.6 billion a year ago, with the curve now bending sharply upward. What was once pitched as a proof of concept is starting to look more like financial plumbing.
Other major players include Ondo Finance’s USDY at roughly $1.21 billion and Franklin Templeton’s BENJI fund just above $1 billion. Together, these products anchor a tokenized Treasury segment that has crossed $11 billion and continues to expand as investors seek yield in a higher-rate environment.
The appeal is not difficult to understand. Tokenized assets offer near-instant settlement, 24/7 trading, fractional ownership, and programmable yield — features that traditional finance still struggles to match efficiently. For institutions, the pitch is less about disruption and more about optimization.
Even so, the trajectory points higher. Analysts widely expect the market to surpass $100 billion in onchain value before the end of 2026, with longer-term projections stretching into the trillions as larger asset classes — particularly real estate and equities — move onchain.
For now, the $27 billion milestone marks a shift in tone. This is no longer about whether tokenization works. It is about how quickly the rest of finance is willing to migrate.
FAQ What are tokenized real-world assets ( RWAs)? RWAs are traditional assets like Treasuries, loans, or commodities represented as blockchain-based tokens backed by legal ownership structures. Why is the RWA market growing in the U.S.?Rising interest rates and demand for yield are driving institutional adoption of tokenized Treasury and credit products. Which blockchain dominates the RWA market?Ethereum leads with about 57% market share and roughly $15.5 billion in tokenized assets. What is the outlook for RWAs in 2026?Analysts expect the sector to exceed $100 billion as more financial assets move onchain.
