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Articlemercuryo.io1y ago

Why 2025 is the Year of RWAs Tokenization

In 2025, Real World Assets (RWAs) tokenization has surpassed $50 billion, driven by major players like BlackRock and Franklin Templeton on blockchains including Stellar. The article explores reasons for its growth, liquidity benefits, regulatory challenges, and potential for governance and social impact. Projections indicate tokenized assets could reach $30–50 trillion by 2030.

Real World AssetsTokenizationFinance
Lumen Loop's take

Real World Assets (RWAs) tokenization has advanced significantly by early 2025, with over $50 billion in real estate, debt, equity, and funds tokenized on blockchains like Stellar, Ethereum, and Polygon. Major institutions such as Franklin Templeton, BlackRock, JPMorgan, and Apollo are leading initiatives, supported by matured blockchain infrastructure, regulatory clarity like the EU’s MiCA, and increased transparency. The article outlines five key reasons for RWA growth, including scalability, investor participation, and DeFi-TradFi bridging. Tokenization unlocks liquidity for illiquid assets via fractional ownership, enabling small investors to access real estate and more. While regulations provide confidence, overregulation risks stifling innovation. RWAs could extend to governance, allowing token holders to influence decisions in real estate and social projects like renewable energy.

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