The post RWA Market Hits $24B, Hong Kong Aims for Digital Asset Lead appeared on BitcoinEthereumNews.com.

The convergence of regulatory clarity and blockchain innovation is taking center stage in 2025, as two major developments signal a maturing digital asset ecosystem. A new report shows the tokenized real-world asset market has expanded to $24 billion, with private credit emerging as the dominant asset class. Simultaneously, Hong Kong’s government has unveiled its second major policy statement on digital assets, reinforcing its commitment to building a globally competitive, well-regulated crypto and tokenization hub. Tokenized Private Credit Surpasses Treasuries as RWA Market Booms to $24B The tokenized real-world asset (RWA) market is entering a new phase of growth and institutional legitimacy, according to RedStone’s H1 2025 RWA Market Overview report, co-authored with decentralized finance (DeFi) protocol Gauntlet and the data analytics platform RWA.xyz. Once a niche corner of the blockchain ecosystem, RWAs have evolved into a $24 billion market, excluding stablecoins, as tokenization expands from public debt products into the lucrative world of private credit. The growth in tokenized private credit (Source: RWA.xyz) The report highlights that tokenized RWAs have surged by 380% since 2022, with private credit now taking center stage. In a marked shift from earlier narratives focused on tokenized Treasury bills, private credit assets now make up more than half of the market—amounting to $14 billion as of mid-2025. Private Credit Becomes the Cornerstone of Tokenized Finance Private credit, also known as direct lending, has historically been a high-yield investment strategy reserved for institutional players. Now, thanks to blockchain-enabled tokenization, access to this yield-bearing asset class is being democratized. Investors can now tap into yields ranging from 8% to 12% through tokenized products such as Apollo Global Management’s ACRED fund, which exemplifies the programmable, yield-focused structure that tokenization enables. According to FS Investments, private credit’s appeal lies in its “yield premium” over traditional public debt instruments. The…

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Filed under: News - @ June 27, 2025 11:28 am