The tokenization of real-world assets (RWA) continues to thrive, with the value of tokenized assets reaching an all-time high of over $3 billion. Despite the crypto bear market, RWA tokenization remains a major growth area in the industry.
Real-world assets are physical assets that are bought and sold on-chain. According to Galaxy Research, the total value of all tokenized real-world assets hit a new record in August. These assets include gold, precious metals, equities, money markets, carbon offsets, treasuries, real estate, and private credit.
Yield-bearing RWAs have experienced significant growth, adding $1.44 billion to the total value of RWAs this year. Gold and precious metals make up around 37% of the total, followed by money markets at 23% and tokenized treasuries at 20%.
Tokenized treasuries have seen explosive growth, increasing by approximately 450% since the beginning of 2023. However, growth has slowed down since mid-June, with tokenized treasuries currently valued at $630 million.
The announcement of the Tokenized Asset Coalition (TAC), which includes prominent companies like Circle, Coinbase, Aave, and Goldfinch, has further boosted the RWA tokenization industry. TAC aims to educate the industry, advocate for standardization, and develop the necessary protocols and infrastructure for widespread adoption.
Overall, the tokenization of real-world assets is a thriving sector, with continued growth and potential for reaching the projected milestone of $10 billion by 2024.
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