The post From Traditional Markets to a Bitcoin-Powered Digital Economy. Exploring the RWA Sector! appeared on BitcoinEthereumNews.com.

The world of finance has been witnessing a quiet revolution as tokenized real-world assets (RWAs) have made their way onto the blockchain. In simple terms, tokenization entails turning things like government bonds, real estate, or loans into digital tokens and in 2024, this convergence kicked into high gear — so much so that by early 2025 the total market value of tokenized RWAs on public blockchains had swelled to nearly $18 billion, up from about $10 billion just a year before.  Thus, what was once a niche experiment seems to have become a burgeoning movement capable of attracting major banks, asset managers, and fintech innovators.     Total on-chain assets as of Q1 2025 (source: Investax.io) The growth is undeniably real Not long ago, the idea of buying a fraction of a commercial building or a sliver of a government bond using a DeFi platform would have sounded far-fetched. Today, it’s a reality as a wave of projects has brought RWAs on-chain, with the numbers telling a very promising story.  For starters, U.S. Treasury securities, which are practically digital mirror images of government bonds, have emerged as one of the fastest-growing segments, with over $6.9 billion worth of these offerings being issued as tokens recently (offering investors a yield of over 4% alongside added perks like 24/7 tradability and near-instant settlements).    Tokenized treasury metrics (source: rwa.xyz) Similarly, private credit consisting of loans and other debt investments traditionally accessible only to institutions now accounts for the largest share of the RWA token market, surpassing $13 billion in value. Crucially, it’s not just crypto startups or DeFi degens driving this trend as major players from the trad-fi have now become deeply involved with the ecosystem. To this point, last year, several household-name institutions rolled out tokenized asset projects, signaling a big shift in mindset. …

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Filed under: News - @ May 15, 2025 1:23 am