The tokenization of real-world assets (RWAs) has reached a new milestone in 2025, hitting a total market value of $24 billion in the first half of the year. At the forefront of this surge is private credit, which now accounts for over $14 billion—more than half of the entire tokenized RWA market.
What Is Driving This Growth?
Private credit, also known as direct lending, traditionally involved illiquid loans with long lock-up periods. Tokenization has transformed this space by converting these loans into programmable, tradable digital assets on blockchains. This innovation:
- Improves liquidity by enabling fractional ownership and faster settlement.
- Lowers barriers to entry for a broader range of investors.
- Offers attractive yields of 8% to 12%, significantly higher than public credit markets and government bonds.
In a low-interest environment—with the 10-year U.S. Treasury yield falling to around 3.2% in 2025—investors are increasingly turning to tokenized private credit for better returns.
Ethereum Dominates the Tokenization Landscape
Ethereum remains the leading blockchain platform for tokenized RWAs, hosting approximately $7.5 billion in tokenized assets across 335 products, which is about 59% of the total market. Ethereum’s mature smart contract ecosystem and growing institutional adoption have solidified its position as the top network for tokenized private credit.
Other Notable Players and Platforms
- Some newer platforms built on other blockchains have tokenized billions in assets, bridging traditional finance and decentralized finance.
- Protocols facilitate tokenization of various private credit instruments, including invoice receivables and secured business loans, leveraging smart contracts for automation and risk management.
Why Institutions Are Embracing Tokenized Private Credit
Institutions such as major asset managers are increasingly launching tokenized credit funds. They seek:
- Higher yields than traditional fixed income.
- Improved liquidity and capital efficiency.
- Greater transparency and real-time auditability through blockchain.
Tokenization also reduces operational costs and enables secondary markets, making private credit more accessible and tradable.
Market Outlook and Impact
The tokenized RWA market has grown significantly since 2022, and private credit’s share is expected to expand further. Industry experts project that by 2030-2034, up to 10%-30% of global assets could be tokenized, potentially bridging traditional finance’s $400+ trillion asset base with blockchain ecosystems.
Table: Tokenized RWA Market Snapshot (Mid-2025)
| Segment | Market Size (Billion $) | Share of Total RWA Market | Key Features |
| Private Credit | 14 | >58% | 8-12% yields, fractional access |
| US Treasury Debt | ~8 | ~34% | Lower yields, high liquidity |
| Other RWAs | ~2 | ~8% | Real estate, infrastructure |
| Total RWA Market | 24 | 100% |
Key Takeaways
- Tokenized private credit leads the RWA market with $14 billion in assets, driven by yield demand and blockchain efficiency.
- Ethereum dominates the space, hosting nearly 60% of tokenized RWAs.
- Institutional adoption is accelerating, with major asset managers launching tokenized credit funds.
- Tokenization is reshaping fixed income by enhancing liquidity, transparency, and accessibility.
- The trend points to a future where a significant portion of global assets will be tokenized on blockchain networks.
FAQs
Q: What is tokenized private credit?
- A: It is private loans converted into digital tokens on a blockchain, allowing fractional ownership, faster trading, and improved liquidity.
Q: Why is private credit attractive now?
- A: It offers higher yields (8-12%) compared to traditional bonds and public credit, especially in a low-interest-rate environment.
Q: Which blockchain leads in tokenized private credit?
- A: Ethereum, with about $7.5 billion in tokenized assets and strong institutional backing.
Q: How does tokenization benefit investors?
- A: It lowers entry barriers, speeds up settlements, enables fractional investments, and creates potential secondary markets.
Tokenized private credit is no longer niche. It is a major driver of the $24 billion RWA tokenization market, signaling a shift in how traditional finance and blockchain converge to create new opportunities for investors and institutions alike.
