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The RWA tokenization market could surge to $16 trillion by 2030, with U.S. Treasuries projected to drive early growth, hitting $4.2 billion in 2025.
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Institutional adoption, regulatory progress in major hubs, and blockchain’s efficiency are fueling momentum, though challenges like liquidity, legal clarity, and security risks remain.
The market for tokenized real-world assets (RWA) is on track for explosive growth, potentially reaching $16 trillion by 2030, according to the newly released 2025 Skynet RWA Security Report. The report highlights that adoption is being fueled by collaboration between traditional finance (TradFi) institutions and decentralized finance (DeFi) platforms, as both sectors increasingly recognize the benefits of digitizing real-world assets on blockchain networks.
A key driver of this trend is the rapid rise of tokenized U.S. Treasuries. Skynet projects that this market segment alone will hit $4.2 billion in 2025, with short-term government bonds leading most of the activity. Institutional investors are leaning on these products for yield generation and liquidity management, especially in an environment of evolving interest rate dynamics.
Institutional Momentum Behind Tokenization
The report emphasizes that traditional financial institutions, including major banks and asset managers, are actively exploring tokenization strategies. Use cases extend beyond government bonds to areas such as private credit, trade finance, money market funds, commodities, and even real estate.
By moving these assets onto blockchain, institutions aim to improve efficiency, transparency, and settlement speed while opening access to broader pools of investors.
This convergence of traditional finance and DeFi presents opportunities for improved efficiency, transparency, and accessibility, Skynet stated.
Geographically, Hong Kong, Singapore, and the United States are leading the way in creating regulatory frameworks that enable broader institutional entry into tokenized asset markets. These regulatory efforts are expected to accelerate adoption by providing legal clarity and investor protection.
Challenges on the Road to $16 Trillion
Despite the bullish forecast, the report warns of several challenges that must be addressed before the sector can scale to $16 trillion. Among them are limited secondary market liquidity, inconsistent legal treatment across jurisdictions, and the need for standardized risk controls.
Security remains another concern. Skynet flagged smart contract vulnerabilities and cyber risks, stressing the importance of regulated custodians.
Use of qualified custodians with robust security infrastructure, such as federally chartered crypto banks or licensed custodians, is a critical factor for institutional trust, the report noted.
Bridging the gap for retail investors is another key challenge. While institutions dominate the current landscape, many individuals lack direct access to tokenized products. The report suggests that regulated intermediaries and simplified on-ramps will be essential to extend participation to retail markets while maintaining investor protections.
Skynet concludes that infrastructure investments and regulatory clarity will be critical for the sector’s expansion. Still, the combination of real-world yields and blockchain-native liquidity is already drawing strong interest from both retail and institutional investors.
If the forecasts hold, the tokenization of real-world assets could reshape global capital markets by 2030, creating new pathways for liquidity, transparency, and financial inclusion.
