In-depth Analysis of the RWA Track: 2025 Crypto Market Rise Engine

The rapid rise of decentralized finance (DeFi) has created a financial ecosystem that does not rely on traditional banking systems. However, the core issue facing the DeFi space is its heavy dependence on encryption assets and the lack of sufficient real-world assets (RWA) to support it, limiting its development to the volatility of the crypto market. The emergence of the RWA track is breaking this limitation by combining real-world financial assets with blockchain technology, not only enhancing the stability of on-chain financial products but also bringing significant liquidity increments to the market. This track has become a key bridge for institutional investors and mainstream financial institutions to enter the crypto industry, with the potential to drive the entire blockchain industry into a new growth cycle.

The core concept of RWA is to digitize various assets in traditional financial markets (such as bonds, real estate, stocks, artworks, private equity, etc.) and convert them into tokenized assets that can be traded, collateralized, or lent on the blockchain through blockchain technology. This process not only enhances asset liquidity but also reduces friction costs in traditional financial markets, such as long transaction clearing times, high intermediary costs, and limited liquidity issues. Taking the bond market as an example, traditional bond trading involves multiple financial institutions and regulatory agencies, with cumbersome intermediate steps that lead to high transaction costs. In contrast, RWA tokenization enables real-time clearing on-chain, significantly improving trading efficiency and reducing transaction costs. At the same time, the transparency and traceability of blockchain make RWA asset management more transparent, effectively reducing fraud and improper operations in the market.

As blockchain technology matures and market demand rises, the RWA sector is attracting more and more institutional participation. BlackRock, one of the largest asset management companies in the world, recently launched the blockchain-based tokenized fund BUIDL, which mainly holds stable assets such as U.S. Treasury bonds and provides more efficient trading methods through blockchain. Traditional financial giants like Franklin Templeton are also actively attempting to tokenize some of their fund products, making it easier for investors to participate in the market. These cases indicate that the RWA sector is no longer just a "crypto narrative" but has become a core trend in the digitalization of the global financial market.

From a technical perspective, the development of RWA relies on support from multiple key infrastructures, including underlying blockchain networks, smart contracts, oracles, decentralized identity, and compliance management. Ethereum remains the preferred network for RWA tokenization, with many institutions deploying smart contracts on Ethereum to manage RWA assets. At the same time, L2 solutions (such as Arbitrum and Optimism) have also become popular choices for RWA asset trading, reducing transaction costs and increasing throughput. Furthermore, public chains such as Solana, Avalanche, and Polkadot are also exploring application scenarios for RWA assets, striving to capture market share.

From the perspective of market size, the RWA sector has enormous potential. The Boston Consulting Group estimates that by 2030, the market size of the RWA sector will reach $16 trillion, far exceeding the current total market capitalization of the entire crypto market. Currently, the global real estate market is valued at approximately $300 trillion, but most real estate investments require significant capital and have low liquidity. If 1% of these assets are tokenized, it could create a $3 trillion RWA market. Similarly, the global bond market exceeds $120 trillion, and if 1% enters the blockchain, it will form a $1.2 trillion emerging market.

Institutional funds are rapidly flowing into the RWA track, indicating that this track is no longer a pure "encryption experiment" but has become an important part of the global financial system. In 2025, as governments show support for the encryption industry, this trend will continue to develop. For investors, the RWA track not only provides new market opportunities but may also become an important bridge for the integration of the crypto market and traditional financial markets. In the coming years, with the improvement of infrastructure, the establishment of regulatory frameworks, and further布局 by mainstream financial institutions, the RWA track is expected to become a new growth engine for the blockchain industry, even driving the digital transformation of the entire financial market.

Overall, the rise of the RWA sector represents the maturity of blockchain technology and the expansion of application scenarios, which also signifies a new stage of decentralization and efficiency in the global financial market. For market participants, how to seize the opportunity of RWA asset tokenization, and layout infrastructure and key protocols, will become the core proposition for the development of the crypto industry in the coming years.

Current Market Environment: Catalysts for Macro Economy and RWA Development

Against the backdrop of increasing uncertainty in the global economy, changes in liquidity cycles, and the booming digital asset market, the RWA track has become one of the most important growth points in the crypto industry. With adjustments in the Federal Reserve's monetary policy, ongoing inflationary pressures, fluctuations in the debt market, and increased institutional participation in the crypto market, the development of RWA is ushering in unprecedented opportunities. At the same time, the drawbacks of the traditional financial system and the continuous maturation of DeFi are also driving the migration of real-world assets onto the blockchain. This article will deeply explore the catalytic factors for the development of the RWA track from five aspects: the global macroeconomic situation, liquidity environment, policy and regulatory trends, institutional entry, and the maturity of the DeFi ecosystem.

Global macroeconomic situation: Changes in inflation, interest rates, and market risk aversion sentiment.

The global macroeconomic environment is one of the most critical variables affecting the development of RWA. In recent years, due to factors such as weak economic recovery after the COVID-19 pandemic, escalating geopolitical conflicts, supply chain issues, and adjustments in central bank policies, there is significant uncertainty in global economic growth. Among them, changes in inflation and interest rate policies directly affect capital liquidity and investors' asset allocation strategies, and also indirectly promote the development of the RWA sector.

First, from the perspective of inflation, the Federal Reserve's aggressive interest rate hike policy over the past two years has had a profound impact on global markets. Since 2022, the Federal Reserve has raised interest rates multiple times in a row to curb high inflation rates, leading to a tightening of global liquidity. In a high-interest rate environment, investors' risk appetite decreases, traditional financial markets are impacted, and capital tends to flow into low-risk, high-yield asset classes. This has prompted investors to focus on assets such as government bonds, gold, and real estate, and the tokenization of these assets has become an important growth point in the RWA sector. For example, the tokenization of U.S. Treasury bonds (such as the OUSG token provided by Ondo Finance) has become an important investment tool in the crypto market due to its high annual yield (over 5%), attracting a large influx of DeFi funds. Secondly, as the global debt crisis intensifies, the RWA sector has become an important option for capital risk aversion. As of 2024, the total global debt has exceeded $300 trillion, with U.S. Treasury bonds exceeding $34 trillion and the fiscal deficit reaching a historical high. In this context, investors' confidence in traditional financial markets is shaken, and they are seeking more transparent and efficient financial infrastructure. The trustless, borderless, and low-cost characteristics provided by blockchain technology make the on-chain transformation of RWA assets the best solution. Additionally, in a high-inflation environment, the demand for gold and commodities has surged, and gold tokens (such as PAXG and XAUT) have also become popular assets in the crypto market. Overall, the increase in global economic uncertainty has raised investors' demand for safe-haven assets, while the innovations in the RWA sector have made it easier for these assets to enter the crypto market, driving explosive growth in the sector.

Liquidity Environment: Federal Reserve Policy Shift and Changes in Market Risk Appetite

The RWA track is developing rapidly, thanks to changes in the global liquidity environment. From 2022 to 2023, the Federal Reserve implemented significant interest rate hikes, leading to a severe tightening of global market liquidity. However, since 2024, as inflationary pressures have eased, the Federal Reserve has entered the final stages of interest rate hikes and may even begin a rate-cutting cycle, changing market liquidity expectations, which has a great impact on the RWA track.

First, the adjustment of the Federal Reserve's monetary policy has increased the market's demand for stable yield assets. The DeFi ecosystem experienced high volatility and high-risk phases in 2021-2022, but current investors prefer low-risk, predictable yield products, and the RWA sector happens to provide this solution. For example, bond tokenization and private market tokenization allow investors to enjoy more stable and compliant yield models within the DeFi ecosystem, which is also one of the important reasons for the explosion of RWA in 2024. Secondly, from the perspective of the crypto market, BTC will welcome the approval of spot ETFs in 2024, and institutional capital continues to flow in, expanding the entire crypto market's capital pool. Beyond BTC, this capital also needs to find more stable investment targets. RWA assets, due to their deep binding with traditional financial markets, have become an important allocation direction for institutional funds. For instance, asset management giants like BlackRock and Fidelity have begun to pay attention to the RWA field and have launched related investment products, which will further promote the rise of the RWA sector. In addition, as DeFi interest rates decline, the yield advantage of the RWA sector becomes increasingly apparent. In 2021-2022, the yield rates in the DeFi ecosystem generally exceeded 10%, but in 2024, the yield rates of most DeFi protocol stablecoins have dropped to between 2% and 4%, while the yield rates of RWA assets, like U.S. Treasury bonds, still maintain above 5%. This makes RWA assets a new pillar of DeFi yields, attracting a large influx of funds.

Policy Regulatory Trends: Compliance Process of RWA Track

In the development of the encryption industry, regulatory issues have always been a focus of market attention. The rise of the RWA sector is due to its greater compliance compared to other DeFi sectors, meeting the needs of institutional investors. Regulatory agencies in various countries are gradually accepting the innovative model of asset tokenization and exploring how to support the development of the RWA ecosystem through legal frameworks.

Firstly, the US SEC and CFTC have conducted research on areas such as security tokenization and bond tokenization, allowing certain institutions to issue tokenized assets under a compliant framework. For example, Securitize has been recognized by the SEC and can issue blockchain-based security tokens, providing a good model for the compliance of the RWA track. Secondly, regions like Europe, Japan, and Singapore hold a relatively open attitude towards the RWA track. For example, Switzerland's SIX Digital Exchange and Germany's Boerse Stuttgart Digital Exchange have both supported tokenized stock trading, while the Singapore government is actively promoting the on-chain development of RWA assets. These favorable policies make institutional investors more willing to enter the RWA track, providing a solid foundation for its development.

Institutional entry and the maturity of the DeFi ecosystem

In addition to macroeconomic factors and regulatory policies, the entry of institutions and the maturity of the DeFi ecosystem are also important driving factors for the rise of the RWA sector. Traditional institutions are beginning to pay attention to the integration of DeFi and TradFi, with many leading asset management companies, banks, and hedge funds starting to research how to issue and trade RWA assets on the blockchain. Meanwhile, the DeFi ecosystem is gradually shifting from "high volatility, high risk" to "stable returns, compliant development," making the RWA sector a core beneficiary of this trend. An increasing number of DeFi protocols (such as MakerDAO, Aave, and Maple Finance) are deeply integrating with RWA assets, which enhances the sustainability of the growth in the RWA sector.

In summary, the explosion of the RWA track is not only a result of market demand but also a product of the joint effects of the global macro economy, policy regulation, liquidity environment, and the evolution of the DeFi ecosystem. Driven by these catalytic factors, the RWA track is expected to become one of the most important engines for the rise of the crypto market in 2024-2025.

Main Classification and Core Project Analysis of the RWA Track

As the crypto market continues to mature and institutional funds accelerate their influx, the rise of the RWA track has become a significant trend. The core goal of the RWA track is to issue, trade, and manage assets from the traditional financial market, such as bonds, real estate, commodities, and private equity, through blockchain tokenization, making them more liquid, easier to access, and able to integrate with the DeFi ecosystem. This not only brings the convenience of decentralized finance to traditional assets but also provides a more stable source of income for the DeFi ecosystem. The RWA track has a rich variety of application scenarios, with different types of real-world assets displaying various forms on the chain, typically categorized into the following major types: bond-type RWA, commodities and bulk assets RWA, real estate RWA, equity and private market RWA, and infrastructure and supply chain RWA. In this section, we will explore these categories in detail.