Real-world asset tokenization protocols have experienced a remarkable surge in growth over the past year, reaching an all-time high in total value locked (TVL) across the sector. According to blockchain analytics and research firm Messari, TVL for real-world asset (RWA) protocols reached nearly $8 billion as of April 26. This growth has been driven by market demand for high-yield investments based on debt. It is important to note that the $8 billion TVL does not include fiat-backed stablecoins like Tether (USDT) and USD Coin (USDC), but encompasses carry trade protocols, underwriting, yield-bearing stablecoins, commodities, securities, and real estate tokenization protocols. Since February alone, the TVL in RWA protocols has increased by almost 60%.
According to DeFiLlama, a decentralized finance analytics platform, the combined TVL for RWA protocols is slightly lower at $6 billion, but still demonstrates substantial growth of approximately 700% since the beginning of 2023. It is not just the TVL that has experienced impressive growth this year; the number of active users on RWA protocols has also risen significantly since February, indicating increased popularity among retail users, as per Dune Analytics data. The protocols seeing the highest growth in terms of active users include digital carbon market platforms Toucan and KlimaDAO, as well as the real estate tokenization protocol Propy.
Another area of significant growth in the RWA sector is tokenized treasuries, which have seen a surge in demand due to high yields amid inflation and interest rate concerns in the United States. Currently, there is a record $1.29 billion locked in tokenized U.S. treasuries and bonds, with an 80% increase since the beginning of 2024, primarily driven by protocols like Securitize and Ondo, according to RWA.xyz. The recent success of BlackRock’s Ethereum-based Institutional Digital Liquidity Fund (BUIDL) and the Franklin OnChain U.S. Government Money Fund (FOBXX) has played a significant role in the growth of this aspect of the RWA market.
In summary, real-world asset tokenization protocols have experienced explosive growth, reaching new highs in total value locked. This growth has been driven by market preference for high-yield debt-based investments. The TVL in RWA protocols has surged by almost 60% since February, and the sector has seen a significant increase in active users. Tokenized treasuries and bonds have also seen substantial growth, with a record amount locked in these assets. The success of specific protocols, such as BlackRock’s BUIDL and Franklin OnChain’s FOBXX, has contributed to the growth of the RWA market.