The real-world asset (RWA) narrative is moving past theory and into execution. New tokenization research from ARK Invest shows that on-chain finance is beginning to scale - but only in areas where the structure is simple, liquid, and institution-friendly.
Key takeaways:
RWAs are scaling fastest where assets are simple, liquid, and well understood
Tokenized Treasuries remain the core foundation of on-chain finance
Commodities, especially gold, are emerging as the next major growth driver
The long-term winners will be platforms that solve distribution and compliance, not just tokenization
By the end of 2025, the total value of RWAs on public blockchains climbed to roughly $19 billion, marking a sharp acceleration from earlier years. Growth was not evenly distributed. Instead, capital concentrated in a small number of asset classes where collateral clarity, pricing transparency, and custody standards were already well understood.
Tokenized Treasuries Remain the Foundation
Tokenized U.S. Treasuries continue to act as the anchor of the RWA ecosystem. Their appeal is straightforward: low risk, clear yield, daily liquidity, and strong legal frameworks. These instruments have become the default entry point for institutions experimenting with on-chain exposure, effectively functioning as blockchain-native cash equivalents.
Their dominance highlights a broader theme in the data – RWAs scale fastest when complexity is minimized.
Commodities Drive the Next Growth Phase
The fastest expansion in 2025 came from tokenized commodities, particularly gold. On-chain commodity products grew more than 60% quarter over quarter, pushing total tokenized commodity value to around $3.5 billion.
Much of that growth was concentrated in tokenized gold offerings led by Tether and Paxos, reflecting renewed investor demand for hard-asset exposure combined with on-chain settlement and transferability.
This suggests commodities may become the primary growth engine for RWAs as investors look for inflation hedges that can move seamlessly across blockchain-based financial rails.
Institutional Funds Quietly Scale On-Chain
Institutional alternative funds also expanded steadily, though with far less public attention. These vehicles benefit from familiar fund structures while leveraging blockchain rails for settlement, reporting, and operational efficiency.
Private credit, meanwhile, has returned as an on-chain use case, but remains constrained by distribution challenges rather than demand. Platforms such as Maple Finance drove much of the recent growth, yet access, compliance, and redemption mechanics continue to limit broader adoption.
Why Infrastructure Matters More Than Tokenization
The data makes one point clear: tokenization itself is no longer the bottleneck. The real competitive advantage lies in distribution, trust, custody, regulatory compliance, and reliable redemption workflows.
Looking ahead, the next major unlock for RWAs is expected to come from tokenized money – including stablecoins and tokenized bank deposits. Together, these could enable atomic settlement and fully on-chain markets, shifting the focus from putting assets on-chain to running entire financial markets there.
