Cathie Wood and her team at Ark Invest are feeling optimistic about the future of real-world asset (RWA) tokenization. They see it as a game changer for the digital assets market. Recently, Tether, the largest stablecoin issuer, launched a new platform called Hadron. This platform allows users to tokenize a wide range of assets, from commodities to corporate bonds.
Ark Invest believes that Hadron’s launch shows a growing interest in tokenization, which is still in its early stages. Right now, the total value of tokenized RWAs is around $11 billion. That’s just a tiny fraction of the estimated $500 trillion market out there. Ark thinks Tether is in a prime position to lead this space since RWAs fit perfectly with its core business of linking digital assets to traditional currencies.
So, what exactly are RWAs? They are physical or off-chain assets, like real estate, art, and financial instruments such as stocks and bonds. Tokenization makes it possible to represent these assets digitally on public blockchains. This not only makes trading easier but also enhances transparency thanks to blockchain technology.
A major player, BlackRock, has also entered this field. They introduced a tokenized U.S. Treasury product called BUIDL, built on the Ethereum blockchain. As of now, BUIDL has a market cap of $541.79 million, according to RWA market tracker Rwa.xyz.
Looking ahead, the real estate tokenization market is projected to grow significantly. According to Prophecy Market Insights, it was valued at $3.8 billion in 2024 and is expected to reach $26 billion by 2034. That’s a compound annual growth rate (CAGR) of 2.90%.