The rise of tokenized real-world assets (RWAs) is essential for the survival of traditional financial markets plagued by illiquidity, opacity, and lack of scalability. RWAs provide predictable yields and enhance market liquidity, transparency, and democratization in finance. Legacy financial systems are hindered by slow, costly intermediaries, leading to trust issues and losses for investors. This was evident as private equity fundraising fell by 24% in 2024. In contrast, RWAs streamline portfolio management and facilitate automation of transactions, allowing direct access to both traditional and emerging markets. Significant capital inflows from institutions into RWAs have led to immense growth, particularly in tokenized private credit, which is now valued over $11 billion. Institutional adoption is driving awareness, but ultimately, retail investors will benefit most from RWAs due to improved access to capital markets and fractional ownership opportunities. Estimates suggest that RWAs could grow to between $50 billion and $30 trillion in the next few years, impacting traditional finance significantly, ensuring those who adapt thrive while others become obsolete.

Source 🔗