Tokenisation—the process of representing ownership rights as digital tokens on a blockchain—has moved from concept to multi-billion dollar reality. The market for tokenised real-world assets (excluding stablecoins) tripled during 2025, reaching approximately $19 billion according to RWA.xyz. Analysts project this could grow to $2 trillion or more by 2030. For advisers, understanding what’s being tokenised and why helps explain where blockchain infrastructure intersects with traditional finance.
The mechanics are straightforward. Tokenisation converts ownership rights—whether in property, securities, or commodities—into programmable digital tokens recorded on a blockchain. These tokens can be transferred, traded, and in some cases fractionalized, creating liquidity for traditionally illiquid assets. Smart contracts automate functions like dividend distribution, compliance checks, and settlement.
What is tokenised?
Private credit dominates the current market, with roughly $9 billion in tokenised loans. Figure, the largest issuer, has originated over $12 billion in home equity loans on its Provenance blockchain. The appeal is twofold: investors access yields typically unavailable outside institutional channels, while issuers reduce administrative costs and settlement times. Tokenisation turns loans that might take weeks to settle into assets that transfer in minutes.
Government securities represent the second-largest category. BlackRock’s BUIDL fund, launched in March 2024, now holds over $1.8 billion in tokenised US Treasuries. Franklin Templeton’s BENJI fund on Stellar has accumulated roughly $800 million. These products offer the safety of government bonds with blockchain’s 24/7 availability and programmable features. Institutional demand reflects a straightforward value proposition: the same underlying asset, but with improved operational efficiency.
Commodities have also found their place. Gold-backed tokens like Paxos Gold (PAXG) and Tether Gold (XAUT) account for the majority of the $2 billion tokenised commodities market. Each token represents ownership of physical, vaulted bullion, providing gold exposure without the complexity of physical storage or the tracking error of derivatives.
Ethereum leads the way
Ethereum remains the dominant infrastructure, hosting approximately $12 billion in tokenised assets—roughly two-thirds of the market. Its established ecosystem, security track record, and institutional familiarity make it the default choice for regulated issuers. BlackRock, for instance, launched BUIDL on Ethereum before expanding to other networks. Other Ethereum-compatible networks (Layer 2s) also offer tokenisation at lower costs, such as Arbitrum, Base or Polygon.
But tokenisation isn’t exclusively an Ethereum story. Solana’s RWA activity reached $2.4 billion in 2025, growing 200% year-on-year, driven by its low transaction costs and high throughput. Avalanche also has attracted institutional players through its subnet architecture (secondary networks), which allows custom compliance environments—the Dubai Land Department, for example, now issues property ownership certificates on an Avalanche subnet.
Why it matters
For advisers, several practical points emerge. First, tokenisation doesn’t change what an asset is—it changes how ownership is recorded and transferred. A tokenised Treasury bill is still a Treasury bill; the underlying risk profile remains the same. Second, not all tokens are created equal. Some represent direct ownership; others are synthetic instruments that track prices without conferring shareholder rights. Due diligence on the legal structure matters.
Third, regulatory frameworks are developing but not yet uniform. The EU’s MiCA regulation provides some clarity, while the US remains fragmented. How tokens are classified—as securities, commodities, or something else—determines what protections investors receive.
Tokenisation is infrastructure, not an asset class. But as more traditional assets move on-chain, advisers who understand the mechanics will be better positioned to evaluate the products that emerge from this shift.