Tokenized real-world assets have tremendous potential for growth in finance. In 2024, numerous international banks like HSBC or Citibank have advanced their tokenization initiatives into their operating models. This growth is not limited to finance; the Real Estate sector is also at the edge of this transaction, with an expected Market Cap of $1.5 trillion by 2025. The Asset Tokenization Platform Development initiatives are helping institutions reshape their business models with improved transaction security, transparency, and efficiency. While investors are embracing them to reshape their investment strategies. So, which tokenized assets are accelerating their growth? Let’s find out!

Asset Tokenization Market Landscape in 2025

The Real World Asset Tokenization Market is expected to reach a staggering $30 trillion by 2034. Financial instruments like Tokenized Bonds and Debt Instruments will witness enormous growth. Regulation clarity, DeFi Integration, and AI automation will continue to take place, strengthening tokenization growth and introducing transparency across financial markets.  As per the recent data, about 12% of Real Estate Firms are using the Tokenization solution. Fractional ownership will become the new normal, democratizing investment opportunities and unlocking higher liquidity for institutional investors.

Asset Tokenization Platform Development will boost the trading of security bonds and stocks with AI automation, resulting in increased efficiency, quick settlements, and easy access to the international market. The driving force behind this growth will be Smart Contracts automation and legal compliance. Banks or financial institutions are looking forward to integrating tokenization into their business practices. 2025 is the best year to begin the journey and drive growth.

1. Tokenized Treasuries

U.S. Treasury securities are represented as digital tokens on blockchain networks. Tokenized US treasuries have witnessed impressive growth in the past 12 months, scaling from $1.2 billion to $ 6.9 billion. This tokenized treasury growth represents the increasing institutional demand to bring fixed-income assets on-chain to unlock low-risk yield opportunities.

Key Drivers Behind Growth

• Institutional demand for yield-bearing digital assets: As traditional bond markets face liquidity constraints, institutions seek accessible, real-time on-chain alternatives.
• Efficiency and transparency: Blockchain enables instant settlement and automated compliance.
• Market leadership: Asset managers like BlackRock, Franklin Templeton, and JPMorgan are pioneering tokenized treasury funds.

Market Size: Approximately $6.9 billion in tokenized U.S. Treasuries as of May 2025.

2. Institutional Funds

Institutional Funds are the second category leading the charge of tokenized investment with $364.39 AUM. This tokenized asset class offers diverse investment offerings from private equity products to venture capital funds. Securitize is leading the charge of Investment funds on the blockchain with over $ 1 billion in tokenized assets, and Syngum FUSD Liquidity is the emerging player. Emerging tokenization standards are the driving force behind the success.

Key Drivers Behind Growth

• Enhanced liquidity: Tokenization converts traditionally illiquid institutional funds into digital assets, enabling easier trading and broader investor access.
• Automated servicing: Smart contracts automate fund management, compliance, and payments, reducing administrative burdens.
• Institutional participation: Pension funds, endowments, and family offices increasingly invest in tokenized institutional funds for transparency and access to alternative assets.

Market Size: As of 2025, tokenized institutional funds hold $350–$400 million in AUM; platforms like Securitize have tokenized over $1 billion in assets.

3. Tokenized Commodities

Tokenized commodities are the third largest asset class in the RWA sector with a market cap of %1.06 billion. Precious metals, energy, and agricultural products are represented under this category. Among them, gold is the top-most dominating contender, with North America leading the charge, followed by Europe.

Key Drivers Behind the Growth

• Fractional ownership: Investors can buy small shares of commodities like gold or oil, making them accessible to retail investors.
• Market efficiency: Blockchain enables transparent pricing and rapid settlement.
• Yield generation: Some tokenized commodities offer ongoing returns, adding to their appeal.

Market Size: The market cap for commodity-backed tokens on public blockchains reached an all-time high of $1.9 billion as of early 2025.

4. Tokenized Private Credit

Tokenized private credits are loans and credit instruments issued as digital tokens. This unlocks fractional ownership and secondary trading opportunities for institutional investors. Tokenized Private credit is the largest RWA category after Stablecoins, with $9.75 billion in active loans and a cumulative total of $16.48 billion in loans issued to date. This growth indicates that the sector will continue to evolve in the upcoming years. 

Key Drivers Behind Growth

• Enhanced liquidity: Tokenization breaks down illiquid private credit into tradable digital fractions.
• Automated servicing: Smart contracts automate loan servicing, interest payments, and compliance, reducing administrative burdens.
• Institutional participation: Pension funds and family offices increasingly allocate to tokenized private credit for better risk-adjusted returns.

Market Size: Tokenized private credit now accounts for over 50% of the RWA market, with a market value exceeding $12 billion as of March 2025, and recent estimates as high as $14 billion in mid-2025.

5. Tokenized Real Estate

Real Estate Tokenization is becoming increasingly popular among real estate firms and investors worldwide. The growth trajectory of Real estate tokenization indicates that it could reach $16 trillion by 2030.  The tokenization of real estate enables investors to divide their property into fractions, which can be purchased bit by bit by anyone. This unlocks trading opportunities for a broader audience and significantly boosts liquidity that was trapped in the traditional market.

Key Drivers Behind Growth

• Accessibility and fractionalization: Investors can own and trade small shares of high-value properties, lowering entry barriers.
• Global reach: Simplifies cross-border transactions and eliminates intermediaries.
• Platform innovation: Platforms like RealT and Tokeny specialize in real estate tokenization, offering compliance and user-friendly interfaces.

Market Size – The Real Estate Tokenization market could reach up to $3 trillion by 2030, representing 15% of global real estate assets under management.

6. Tokenized Art and Collectibles

Tokenized Art Collectibles are the digital representation of art, collectibles, and NFTs for fractional ownership and trading. In 2025, clear regulatory frameworks in markets like the U.S.  are driving the growth of this asset class, unlocking broader investment opportunities while maintaining rigorous provenance tracking. Platforms like Masterworks are leading the charge by offering creators the benefits of secondary sales indefinitely and reshaping global creative economics.

Key Drivers Behind the Growth

• Democratization of high-value assets: Art and collectibles, previously accessible only to the wealthy, can now be owned fractionally by anyone.
• Secondary market liquidity: Tokens can be traded on regulated platforms, increasing market activity.
• Platform specialization: Companies like Mantra and Brickken focus on tokenizing art and collectibles.

Market Size: The digital collectibles market (which includes NFTs and tokenized collectibles) is projected at $11.25 billion in 2025 and is expected to reach $48.64 billion by 2033.

Takeaway

Tokenized real-world assets are breaking down traditional trading and investment barriers, opening doors to new wealth-building opportunities. The foundation of this growth is decentralized infrastructure, offering access to global markets.

Smart investors recognize the power of Asset Tokenization Platform Development, and businesses focusing on building secure and compliant solutions today will be the first ones to reap the highest benefits in the upcoming years.

Unlock the power of real-world assets with Antier. As a future-ready asset tokenization platform development company, we help you transform real estate, commodities, and institutional funds into fully compliant digital assets, ready for seamless trade and global access. From liquidity to transparency, we build the foundation for faster capital flow and wider investor reach.

Ready to take your assets global? Let’s make it happen.