Tokenized Asset Market Surpasses $50 Billion

The market for tokenized assets across all classes has now exceeded $50 billion, according to a new report from Brickken titled “RWA Tokenization: Key Trends and 2025 Market Outlook.” Of this total, $30 billion is derived from tokenized real estate.

Market Projections

This growth positions the tokenized market to potentially reach a $2 trillion market cap by 2030, as projected by McKinsey.

Key Insights

One significant insight from the report is the surge in debt tokenization, especially in Europe, where Germany accounts for nearly 60% of tokenized bond issuance. The European Investment Bank’s €100 million digital bond on Ethereum exemplifies this trend, largely driven by the European Union’s regulatory clarity.

New entrants including Coinbase Asset Management, Glasstower, and Ripple are expected to join the space in 2025, expanding tokenized liquidity products along with industry giants such as BlackRock, Franklin Templeton, and UBS.

Real Estate Tokenization

Real estate remains a major focus for tokenization because of its traditionally illiquid nature. The process enables fractional ownership, enhanced liquidity, and more efficient collateralization, with over $30 billion already tokenized or in the pipeline.

Tokenized real estate assets are increasingly being used as collateral on decentralized finance platforms, improving access to liquidity.

Another advantage of tokenization is the ability to broaden market access. Traditional real estate investments often require substantial capital commitments, limiting participation to institutional investors or high-net-worth individuals. Tokenization allows assets to be fractionalized into smaller, affordable units, making them accessible to a larger pool of investors.

This democratizes investment opportunities, allowing retail investors to participate in high-value assets like commercial real estate without typical market barriers.

The report also emphasizes the rise of tokenized liquidity products such as Franklin Templeton’s BENJI fund and BlackRock’s USD Institutional Digital Liquidity Fund, illustrating the growing accessibility of tokenized investments across both retail and institutional markets.

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