Crypto: The RWA Market Reached $12 Billion In Capitalization!

The market for real-world assets (RWA) continues to grow. It reached a record $12 billion in 2024. This emerging sector is attracting more and more attention from crypto investors, especially with the rise of tokenized Treasury bonds and private credit.

On-chain real-world assets ("RWAs") have reached an all-time high.

Our new report explores this recent growth, outlines key RWA categories, and provides a tech-driven tour of some of the most interesting protocols in the space.

Read on 🔽https://t.co/1w8gr3Nrkg

— Binance Research (@BinanceResearch) September 13, 2024

Tokenized Treasury Bonds Boost the Crypto RWA Market

In 2024, tokenized Treasury bonds experienced exponential growth. Specifically, they increased from $769 million at the beginning of the year to $2.2 billion in September.

This surge is mainly due to high interest rates in the United States, which are at their highest level in 23 years. According to Binance Research, this situation is prompting many crypto investors to turn to tokenized assets to diversify their portfolios. Companies like BlackRock have also established themselves in this market, with their BUIDL product exceeding $500 million.

Tokenized Private Credit and Commodities on the Rise

The crypto market for tokenized private credit has also seen significant expansion. It recorded 56% growth year on year, reaching $9 billion. The IMF estimates that global private credit amounts to $2.1 trillion. This suggests even greater development potential for this crypto sector.

Tokenized commodities, particularly digital gold, dominate the category with Paxos Gold and Tether Gold. They account for 98% of the market for $970 million of tokenized gold products. This demonstrates a strong appetite among crypto investors for stable assets in an uncertain economic environment.

The RWA market continues to grow at a steady pace but presents risks (notably in terms of centralization and dependence on intermediaries). However, this new category of tokenized assets seems well on its way to establishing itself in the crypto landscape.