Real World Asset Tokenization to Hit $50B in 2025, Ozean Research: Why It Matters
From making traditionally illiquid assets more accessible to cutting inefficient trading, tokenization is being hailed as the next big thing in finance.
By the end of 2025, experts project that tokenized real-world assets (RWAs) could hit $50 billion in value, according to a new report by Ozean Research.
For the newbies, tokenization is the process of representing physical or financial assets or literally anything — like real estate, private credit, or treasuries — as digital tokens on a blockchain.
These tokens are tradable and divisible and provide a transparent way to manage ownership. For years, the idea has lingered on the periphery, but 2024 marked a tipping point. What changed, and why does 2025 look even more promising?
The State of Tokenized Assets
In 2024, the value of tokenized assets surged by 32%, with non-stablecoin RWAs like real estate and private credit growing by 53%, according to a report from the Tokenized Asset Coalition (TAC).
Take Clearpool for example. The decentralized credit marketplace processed $650 million in loans in Q4 2024 alone, with tokenized credit products gaining traction among institutional and retail investors alike.
Financial titans like BlackRock and Franklin Templeton are doubling down on tokenization. BlackRock’s tokenized fund launched in early 2024 paved the way for other major players. Note that BlackRock handles $11.5 trillion in assets.
Why Tokenization Has Gained Traction
Selling a property or managing private loans involves long processes, intermediaries, and high costs. Tokenization changes this by enabling fractional ownership. Investors can now own a portion of an asset, making it easier to buy, sell, or trade shares without needing to deal with the complexities of entire ownership.
This is an example of how a complex market like real estate can be simplified for investors. Real estate is a part of everyone’s life, whether it’s buying a home or investing in property. Tokenization is likely the only technology that makes it easy to invest in and own a fraction of land seamlessly.
High barriers to entry have historically excluded smaller investors from lucrative asset classes. With tokenization, individuals can invest as little as $100 in high-value assets like luxury real estate or government bonds. This accessibility is helping to bridge the gap between retail and institutional investors.
Blockchain eliminates the need for middlemen, drastically reducing transaction costs and settlement times. Instead of waiting days for trades to clear, tokenized assets can be transferred almost instantly. This efficiency attracts institutions and governments alike, as seen with the Monetary Authority of Singapore (MAS) and Japan’s SBI Digital Markets, which are piloting tokenized securities projects to enhance liquidity and lower costs.
McKinsey estimates tokenized assets could reach $4 trillion by 2030, while Standard Chartered is even more optimistic, projecting a $30 trillion valuation by 2034. These figures are not mere numbers — it mean the world’s biggest corporations, who were probably very skeptical are now capturing the potential of what blockchain has to offer.
Challenges Still Exist
For tokenization to thrive, there needs to be a critical mass of buyers and sellers. Without enough participants, trading tokenized assets remains limited, discouraging new entrants.
Governments like Slovenia, which issued tokenized sovereign bonds, have shown how creating safe and liquid markets can inspire broader adoption. However, these efforts are still exceptions rather than the norm.
Many financial institutions rely on legacy systems that are not designed for blockchain integration. Upgrading these systems requires significant investment and disrupts existing operations. Until these barriers are addressed, the transition to tokenization will remain slow.
For those who have yet to explore tokenization, now is the time.
A Vision for the Future
With the right adoption, you could think of a world where you can own a piece of farmland in Australia, invest in a skyscraper in New York, or back a solar project in Africa — all through a few clicks on your phone.
Blockchain would handle the transactions, ensuring transparency, security, and efficiency
The $50 billion milestone projected for 2025 is just the beginning. With the right mix of innovation, regulation, and adoption, the possibilities are limitless.
Here’s What We Are Building
TokenFi wants to simplify tokenization for everyone — not just big companies or tech-savvy investors. The idea is simple: give people a straightforward way to turn their assets into digital tokens, whether it’s real estate, a business, or even a creative idea.
With the upcoming RWA Tokenization Module, TokenFi creates a platform where users can tokenize their assets in just a few clicks. No blockchain expertise or coding knowledge is required. It’s designed to be as simple and user-friendly as setting up an online account.
