Back to blog
Research

What is Tokenization of Real-World Assets? The $30 Trillion Revolution Explained

Explore the transformative concept of real-world asset tokenization, its rapid growth, major asset classes involved, and the role of Token Metrics in analysis and investment.
Token Metrics Team
8
Want Smarter Crypto Picks—Free?
See unbiased Token Metrics Ratings for BTC, ETH, and top alts.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
 No credit card | 1-click unsubscribe

The financial world is undergoing a historic transformation as real-world assets migrate onto blockchain networks at an unprecedented pace. What began as experimental pilots has rapidly expanded into a $30 billion market in 2025, with projections soaring to $30 trillion by 2034. This groundbreaking shift, known as real-world asset tokenization, is fundamentally changing how investors trade, own, and manage valuable assets. Platforms like Token Metrics are at the forefront, empowering investors to capitalize on this massive evolution in the financial landscape.

Understanding RWA Tokenization

So, what is tokenization of real world assets? At its core, real-world asset tokenization is the process of creating a digital representation of ownership rights in physical and traditional financial assets by issuing digital tokens on a blockchain. These assets encompass a broad spectrum—from real estate, corporate bonds, and private credit to commodities, art, and other traditionally illiquid assets. Instead of relying on paper certificates, complex legal frameworks, and intermediaries, tokenization uses blockchain technology to simplify ownership and enable seamless trading.

Imagine a high-value asset like a $10 million real estate property. Through the tokenization process, this property can be divided into 10,000 digital tokens, each representing fractional ownership worth $1,000. Investors can purchase any number of these tokens, gaining fractional ownership in assets that were previously accessible only to wealthy individuals or large institutions. This innovation democratizes access to markets, allowing retail investors to participe alongside institutional investors in asset classes that were once out of reach.

By converting traditional assets into tokenized assets, asset owners and issuers can unlock liquidity, reduce costs, and streamline asset management. The token not only represents fractional ownership but can also encode rights such as interest payments or dividends, all managed efficiently through smart contracts on the blockchain.

The Explosive Growth of RWA Markets

The growth of the real world asset tokenization market has been nothing short of spectacular. From a modest $8.6 billion at the start of 2025, the market ballooned to over $30 billion by mid-year—an astonishing 400% increase in just three years and roughly 260% growth in the first half of 2025 alone. This rapid expansion signals that financial institutions have moved beyond pilot projects to large-scale implementation.

Looking ahead, market forecasts vary but all suggest massive growth. McKinsey predicts the market will reach $2 trillion by 2030, Boston Consulting Group estimates $16 trillion, and Standard Chartered projects up to $30 trillion by 2034. Even the most conservative projections indicate that asset tokenization will reshape the global financial markets, creating opportunities larger than many national economies.

This surge is fueled by several factors, including clearer regulatory frameworks in key jurisdictions like the United States. As regulators provide guidelines for legal compliance, institutional investors gain the confidence to participate in blockchain-based financial products. The convergence of technology, regulation, and market demand is propelling the tokenization revolution forward.

Major Asset Classes Being Tokenized

Tokenization spans a diverse array of asset classes, reflecting its broad applicability across traditional financial assets and physical assets alike. Among the most prominent:

  • Private credit dominates with 58% of the market, approximately $14 billion in tokenized value. Tokenizing private credit reduces operational costs and opens up investment opportunities in lending markets previously reserved for specialized funds and asset managers. The creation of secondary markets enhances liquidity and investor access.
  • US Treasuries hold the second-largest share at 34% ($8.2 billion). These tokenized real-world assets appeal to institutions seeking yield-bearing, blockchain-native securities with around-the-clock trading capabilities. The tokenized treasury market has seen a remarkable 539% growth between January 2024 and April 2025.
  • Real estate tokenization accounts for about 6% of the market. This includes tokenizing real estate assets such as residential buildings and commercial real estate, enabling fractional ownership and easier transfer of property interests through digital tokens.
  • Other asset classes include commodities like gold (3%), equity tokens, and carbon credits (each about 1%). This diversity highlights that tokenization technology adapts well to a broad range of traditional asset classes and tangible assets.

By converting these assets into digital assets on blockchains, investors gain access to previously inaccessible or illiquid markets, benefiting from enhanced transparency and operational efficiency.

Wall Street Embraces Blockchain

The endorsement of blockchain technology by major financial players marks a pivotal moment in the adoption of tokenized real-world assets. Industry giants such as BlackRock, Goldman Sachs, JPMorgan, Franklin Templeton, and Apollo have transitioned from pilot programs to full-scale deployment.

For example, BlackRock’s $2.9 billion BUIDL fund and Franklin Templeton’s $420 million tokenized money market fund demonstrate serious institutional capital embracing blockchain infrastructure. Larry Fink, CEO of BlackRock—the world’s largest asset manager—has publicly declared that tokenization represents the next evolution in financial markets.

When institutions managing trillions of dollars commit to real-world asset tokenization, it signals that this innovation is not speculative hype but a fundamental transformation of traditional finance and capital markets. Their involvement accelerates the development of regulatory compliance standards and fosters broader market acceptance.

Key Benefits Driving Adoption

  • Enabling fractional ownership: Tokenization breaks down high-value assets into smaller, affordable units. This lowers entry barriers, allowing retail investors to participate in markets like tokenized real estate or private equity with minimal capital.
  • Enhanced liquidity: By transforming traditionally illiquid assets into tradable tokens, tokenization facilitates quicker asset transfers. Real estate or private credit investments that once took months to exit can now be sold in minutes on secondary markets.
  • 24/7 global trading: Unlike traditional markets limited by banking hours and geographic boundaries, tokenized assets trade continuously across global markets. Investors anywhere can transact at any time, increasing market efficiency.
  • Transparency and security: Blockchain’s immutable ledger records every transaction and ownership change, offering unprecedented visibility and reducing fraud risk. This transparency builds investor confidence and simplifies asset servicing.
  • Reduced costs and operational efficiency: By consolidating functions such as distribution, clearing, settlement, and custody into blockchain-based protocols, tokenization lowers fees and counterparty risk. This streamlining benefits both asset issuers and owners.

Together, these advantages are reshaping how financial assets are issued, managed, and traded, opening new frontiers for institutional investors and retail participants alike.

As the tokenization of real world assets accelerates, investors face a complex landscape with hundreds of projects and platforms. This complexity underscores the need for sophisticated tools to analyze opportunities and manage risk effectively. Token Metrics, a leading crypto trading and analytics platform, plays a crucial role in this space. It offers comprehensive analysis of tokenized assets, tracking the performance of various RWA protocols and providing data-driven insights. Investors can evaluate the fundamentals of projects, assess regulatory requirements, and compare tokenomics with confidence.

The platform’s AI-driven ratings and indices enable users to benchmark tokenized real estate, private credit, and treasury tokenization initiatives against each other using consistent methodologies. Real-time market data and alerts keep investors informed about key developments, such as new institutional partnerships or changes in securities laws impacting tokenized assets.

For those building diversified portfolios that include both native crypto assets and tokenized real-world assets, Token Metrics offers a unified infrastructure to optimize allocation, understand correlations, and navigate the evolving financial landscape.

Challenges and Considerations

Despite its promise, the tokenization revolution faces several challenges:

  • Regulatory uncertainty remains a major hurdle. Jurisdictions differ in how they define securities, tax tokenized assets, and enforce disclosures, complicating global transactions and legal compliance.
  • Technical standardization is still evolving. Multiple blockchains host tokenized assets, but interoperability is limited, potentially locking assets within specific networks.
  • Legal frameworks and blockchain links: The connection between blockchain records and legal systems requires further development. Practical questions—such as responsibility for property maintenance or tax obligations on tokenized real estate—need clear legal frameworks.
  • Balancing regulation and innovation: Ensuring regulatory frameworks support innovation without hindering growth is a delicate task for regulators and industry participants.

Addressing these issues is critical to unlocking the full potential of asset tokenization and expanding its adoption across traditional markets.

The Road Ahead

The tokenization of real-world assets is no longer a question of if but when and how fast. Industry leaders like Larry Fink of BlackRock and Jamie Dimon of JPMorgan have openly endorsed this transformation, signaling that blockchain-based asset ownership is the future of finance.

The year 2025 marks a tipping point where regulatory clarity, institutional participation, and technological maturity converge to enable widespread adoption. The era of pilots is ending; production-scale deployments are underway. Over the next decade, tokenization will likely encompass nearly every asset class, fundamentally altering how ownership is recorded, transferred, and managed.

For investors eager to participate in this revolution, leveraging platforms like Token Metrics is essential to navigate the rapidly evolving market. As the market grows from billions to trillions, those equipped with superior data, analysis, and insights will be best positioned to benefit from one of the most significant wealth creation opportunities in financial history.

The future of asset ownership is being written in code and deployed on blockchains. Understanding what is tokenization of real world assets today is your first step toward engaging with the financial system of tomorrow.

Build Smarter Crypto Apps &
AI Agents in Minutes, Not Months
Real-time prices, trading signals, and on-chain insights all from one powerful API.
Grab a Free API Key
About Token Metrics
Token Metrics: AI-powered crypto research and ratings platform. We help investors make smarter decisions with unbiased Token Metrics Ratings, on-chain analytics, and editor-curated “Top 10” guides. Our platform distills thousands of data points into clear scores, trends, and alerts you can act on.
30 Employees
analysts, data scientists, and crypto engineers
Daily Briefings
concise market insights and “Top Picks”
Transparent & Compliant
Sponsored ≠ Ratings; research remains independent
Want Smarter Crypto Picks—Free?
See unbiased Token Metrics Ratings for BTC, ETH, and top alts.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
 No credit card | 1-click unsubscribe
Token Metrics Team
Token Metrics Team

Recent Posts

Research

Fundamental Grade Crypto API: Invest with Conviction Using Real Project Signals

Token Metrics Team
4

Most traders chase price action; Fundamental Grade Crypto API helps you see the business behind the token—community traction, tokenomics design, exchange presence, VC signals, and DeFi health—consolidated into one score you can query in code. In a few minutes, you’ll fetch Fundamental Grade, render it in your product, and ship a due-diligence UX that drives trust. Start by grabbing your key at the Get API Key page, Run Hello-TM to verify your first call, then Clone a Template to go live fast.

What You’ll Build in 2 Minutes

A minimal script to fetch Fundamental Grade from /v2/fundamental-grade for any symbol (e.g., BTC).

  • Optional curl to smoke-test your key in seconds.
  • A drop-in pattern to display the grade + key drivers in dashboards, screeners, and research tools.

Endpoints to consider next:

  • /v2/tm-grade (technical/sentiment/momentum)
  • /v2/price-prediction (scenario planning)
  • /v2/resistance-support (risk levels)
  • /v2/quantmetrics (risk/return stats)

Why This Matters

Beyond price, toward quality. Markets are noisy—hype rises and fades. Fundamental Grade consolidates hard-to-track signals (community growth, token distribution, liquidity venues, investor quality, DeFi integrations) into a clear, comparable score. You get a fast “is this worth time and capital?” answer for screening, allocation, and monitoring.

Build trust into your product. Whether you run an investor terminal, exchange research tab, or a portfolio tool, Fundamental Grade lets users justify positions. Pair it with TM Grade or Quantmetrics for a balanced picture: what to buy (fundamentals) and when to act (signals/levels).

Where to Find The Fundamental Grade

The Fundamental Grade is easily accessible in the top right of the API Reference. Grab the cURL request for seamless access!

Build Smarter Crypto Apps & AI Agents with Token Metrics

Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key

How It Works (Under the Hood)

Fundamental Grade aggregates multiple project-quality signals into a normalized score and label (e.g., Strong / Average / Weak). Typical sub-signals include:

  • Community: momentum across channels (dev activity/user traction signals where applicable).
  • Tokenomics: supply schedule, distribution, unlock dynamics, incentives.
  • Exchange Presence: venue coverage, depth/liquidity proxies.
  • VC/Investor Signals: quality/durability of backing and ecosystem support.
  • DeFi Health: integrations, TVL context, composability footprint.

At query time, you call /v2/fundamental-grade with a symbol; responses include the overall score plus component scores you can visualize. For dashboards with many assets, batch fetches and short-TTL caching keep pages responsive. If you push alerts (e.g., “Fundamental Grade upgraded”), prefer webhooks or queued jobs to avoid hammering the API.

Production Checklist

  • Rate limits: Know plan caps; add client throttling and request queues.
  • Retries/backoff: Exponential backoff + jitter; surface actionable error messages.
  • Idempotency: Prevent duplicate downstream actions on retried calls.
  • Caching: Use memory/Redis/KV with short TTLs; pre-warm popular symbols.
  • Webhooks & jobs: For alerts, use signed webhooks or scheduled jobs; log delivery outcomes.
  • Pagination/Bulk: When covering many tokens, paginate or process in batches.
  • Error catalog: Map 4xx/5xx to user-visible fixes; log request IDs.
  • Observability: Track p95/p99 and error rate per endpoint; alert on spikes.
  • Security: Keep API keys in secrets managers; rotate regularly.

Use Cases & Patterns

  • Screener Maker: Rank tokens by Fundamental Grade, filter by market cap/sector, and add “rising fundamentals” badges for discovery.
  • Dashboard Builder: On each token page, show the headline grade with a component chart; link to methodology for transparency.
  • Research & PM Tools: Flag downgrades/upgrades to prompt re-evaluation; attach notes to component changes (e.g., DeFi health drop).
  • Allocator / Risk: Require a minimum Fundamental Grade before inclusion; rebalance only when grade crosses thresholds.
  • Community/Discord: Post weekly upgrades as digest messages with links back to your app.

Next Steps

  • Get API Key — generate a key and start free.
  • Run Hello-TM — verify your first successful call.
  • Clone a Template — deploy a screener or token page today.
  • Watch the demo: VIDEO_URL_HERE
  • Compare plans: Scale confidently with API plans.

FAQs

1) What does the Fundamental Grade API return?

A JSON payload with the overall score/grade plus component scores (e.g., community, tokenomics, exchange presence, VC backing, DeFi health) and timestamps. Use the overall grade for ranking and component scores for explanations.

2) How fast is the endpoint? Do you publish SLOs?

The API is engineered for predictable latency. For high-traffic dashboards, add short-TTL caching and batch requests; for alerts, use jobs/webhooks to minimize round-trips.

3) Can I combine Fundamental Grade with TM Grade or signals?

Yes. A common pattern is Fundamental Grade for quality filter + TM Grade for technical/sentiment context + Trading Signals for timing and Support/Resistance for risk placement.

4) How “accurate” is the grade?

It’s an opinionated synthesis of multiple inputs—not financial advice. Historical studies can inform usage, but past performance doesn’t guarantee future results. Always layer risk management and testing.

5) Do you offer SDKs and examples?

You can use REST directly (see JS/Python above). The docs include quickstarts, Postman, and ready-to-clone templates—start with Run Hello-TM.

Research

Indices Hub: Join the Waitlist for TM Global 100 (2025)

Token Metrics Team
5

If you’ve been waiting for a simple, rules-based way to own the Token Metrics Global 100—without micromanaging tokens—this hub is for you. The TM Global 100 is a rules-based crypto index that holds the top 100 assets in bull markets and moves to stablecoins in bear markets, with weekly rebalancing and transparent holdings/transaction logs you can verify at any time. It’s designed for hands-off allocators who want disciplined exposure and for active traders who want a core that adapts to regimes—without guesswork or endless rebalancing. Below you’ll find how it works, who it’s for, and exactly how to join the waitlist so you’re first in line when trading opens.

→ Join the waitlist to be first to trade TM Global 100.

Why Indices Matter in October 2025

Search intent right now: investors want credible, rules-based crypto exposure that can participate in upside while reducing drawdown pain. A crypto index is a basket of assets selected and maintained by rules—so you avoid one-off bets and constant manual rebalancing.

With liquidity rotating quickly across sectors, weekly rebalancing helps maintain alignment with current market-cap leaders, while regime switching provides a disciplined, pre-defined response to bearish conditions. The result is a clear, consistent process that removes emotional decision-making and operational drag.

Definition

A crypto index is a rules-based basket of digital assets that’s constructed, weighted, and rebalanced on a set schedule.

How the TM Global 100 Index Works (Plain English)

  • Regime switching: Bullish: Hold the top-100 crypto assets by market cap.
  • Bearish: Exit all positions into stablecoins and wait for a new bullish signal.
  • Weekly rebalancing: Reflects updated rankings and weights across the market-cap universe.
  • Transparency: Strategy modal shows methodology and thresholds; Gauge → Holdings Treemap → Transactions Log make every change visible.

What you’ll see on launch: Price tile, gauge (“rebalances weekly”), 100 tokens, one-click Buy Index flow, and a 90-second checkout via embedded wallet.‍See the strategy and rules.

Benefits at a Glance (Why This Beats DIY)

  • Time saved: No more manual coin-picking, sizing, and calendar rebalances.
  • Lower execution drag: One click vs. dozens of individual orders that can add slippage.
  • Stay current: Weekly rebalances help you capture market-cap changes without constant monitoring.
  • Discipline in drawdowns: Automatic switch to stablecoins removes panic decisions.
  • Radical visibility: Holdings treemap, table, and transactions log show what you own and what changed—every week.
  • Operational simplicity: Embedded wallet and a unified dashboard; no juggling chains and exchanges.

Step-by-Step: How to Get Early Access (Waitlist)

  1. Open the Indices Hub: Head to the Token Metrics Indices hub.
  2. Choose TM Global 100: Open the index page and review the Gauge → Strategy → Holdings.
  3. Join the Waitlist: Add your email to be notified the moment trading opens.
  4. (Optional) Connect Wallet: Pre-connect your wallet for a faster launch-day checkout.

Launch-Day Flow (~90 seconds): Tap Buy Index, review fees/slippage, confirm, and see your position in My Indices. Track Rebalances: After each weekly rebalance or regime change, check the Transactions Log for updates.

→ Join the waitlist to be first to trade TM Global 100.

Decision Guide: Is This Right for You?

  • Hands-Off Allocator: Want broad exposure without micromanaging? Yes—rules-based + weekly rebalances.
  • Active Trader: Need a core that sits in stables during bears while you hunt edges elsewhere? Fits.
  • TM Member/Prospect: Already trust Token Metrics research? This is the rules-based version of “own the market.”
  • Risk-Aware Newcomer: Prefer a clear framework over vibes? Methodology is visible and auditable.
  • DIY Basket Builder: Tired of missed rebalances and slippage? One click can reduce execution drag.
  • Data-First Analyst: Want to verify? See the holdings, weights, and transaction history anytime.

FAQs

1) What is a TM Global 100 index?

It’s a rules-based crypto index that holds the top 100 assets by market cap in bullish regimes and moves to stablecoins in bearish regimes. It rebalances weekly and shows transparent holdings and transactions.

2) How often does the index rebalance?

Weekly, with additional full-portfolio switches when the market regime changes.

3) What triggers the move to stablecoins?

A proprietary market signal. When bearish, the index exits all token positions into stablecoins and waits for a bullish re-entry signal.

4) Can I fund with USDC or fiat?

At launch, funding and settlement options surface based on the embedded wallet and supported chains. USDC payouts are supported for selling; additional entry options may be introduced later.

5) Is the wallet custodial?

No. The Embedded Wallet is self-custodial—you control your funds while using a streamlined, on-chain checkout.

6) How are fees shown?

Before you confirm, the Buy flow shows estimated gas, platform fee, maximum slippage, and the minimum expected value.

7) How do I join the waitlist?

Go to the Token Metrics Indices hub or the TM Global 100 strategy page and submit your email. We’ll notify you the moment trading opens.

Security, Risk & Transparency

  • Self-custody: Embedded smart wallet; you hold the keys.
  • 2FA & session hygiene: Use strong auth practices for your TM account.
  • Fee clarity: Gas, platform fee, and slippage are displayed before you confirm.
  • Auditability: Holdings, treemap, and transactions log are always visible.
  • Model limits: Regime logic can be wrong, and markets can gap; rules reduce discretion—not risk.
  • Regional availability: Product surfaces may vary by region as we expand.

Crypto is volatile and can lose value. Past performance is not indicative of future results. This article is for research/education, not financial advice.

Conclusion

If you want a disciplined, rules-based core that adapts to market regimes, Token Metrics Global 100 is built for you. Weekly rebalances, transparent holdings, and one-click buy remove operational friction so you can focus on your strategy.

→ Click here to get early access to Token Metrics indices.

Research

Top Crypto Index for Hands-Off Portfolios (2025)

Token Metrics Team
4

If you want broad exposure to cryptocurrencies without constant chart monitoring, a top crypto index offers a streamlined way to participate in the market. Token Metrics provides innovative tools to help you understand and access such indices efficiently.

Opening Hook

If you’re seeking an uncomplicated, rules-driven approach to crypto investing that adapts to market conditions, a top crypto index might be worth exploring. These indexes automate the process of capturing upside potential while managing risk during downturns, making crypto investing more accessible for a variety of investor profiles.

What is a Crypto Index?

A crypto index is a systematic, rules-based collection of digital assets that reflects a specific universe—such as the top 100 cryptocurrencies by market capitalization. It relies on transparent methodologies and scheduled rebalancing to ensure that the composition remains aligned with market dynamics. These indexes aim to provide broad exposure while reducing the need for individual asset management.

How Top Crypto Indexes Function in 2025

Many modern crypto indexes incorporate regime switching mechanisms: during bullish periods, they hold top assets; during bear markets, they shift to stablecoins to mitigate losses. Weekly rebalancing updates the constituents based on current market rankings, and transparency tools such as strategy descriptions, gauges, and transaction logs allow users to verify holdings and changes in real-time.

Benefits of Using a Crypto Index Over DIY Approaches

  • Time efficiency: Automates rebalancing and regime switching, saving manual effort.
  • Lower slippage: Executes large baskets with minimal impact on prices.
  • Consistency: Ensures regular rebalancing and discipline during volatile periods.
  • Transparency: Clear logs and dashboards allow for full accountability.
  • Speed: Simplified onboarding with quick allocation processes.

Getting Early Access to Top Crypto Indexes

To gain early exposure, follow these steps:

  1. Open the Token Metrics Indices hub.
  2. Select TM Global 100 and view its details.
  3. Tap “Join Waitlist” and enter your email (optionally connect your wallet).
  4. Review strategy criteria, holdings, and rebalancing rules.
  5. Once launched, connect your wallet, review estimated fees, and confirm your allocation.
  6. Funds appear in your index portfolio, enabling easy tracking and management.

Is This Index Suitable for You?

Consider your investment style:

  • Hands-Off Allocator: Ideal if you prefer broad market exposure with minimal management.
  • Active Trader: Use as a core component, complemented by higher-beta bets.
  • New to Crypto: Great for beginners seeking transparent exposure through simplified flows.
  • DIY Enthusiast: Replace complex basket-building with a rules-based index.
  • Self-Custody User: Benefit from integrated self-custodial wallets with clear transaction records.

FAQs

What is a top crypto index?

It is a rules-based basket that tracks a defined universe of digital assets—such as the top 100 by market cap—using transparent methodology and scheduled rebalancing.

How often does the index rebalance?

The index rebalances weekly, with regime switches occurring when market signals change, ensuring adaptability during different market cycles.

What prompts the move to stablecoins?

A proprietary market-regime signal triggers the transition, exiting token positions to stablecoins during bearish periods and re-entering when signals turn bullish.

Can I fund with USDC or fiat?

At launch, the embedded wallet will support supported funding options based on your chain or wallet. USDC payout is available upon sale; further options may follow.

Is the wallet custodial?

No. It’s an embedded, self-custodial smart wallet—giving you full control over your private keys and funds.

How are fees shown?

Estimated gas, platform fee, slippage, and minimum expected value are displayed before you confirm the transaction, providing full transparency.

How do I join the waitlist?

Visit the Token Metrics Indices hub or the TM Global 100 page, tap “Join Waitlist,” and follow the instructions to register your interest and prepare for launch.

Disclaimer

Crypto assets are highly volatile and can result in significant losses. Past performance does not guarantee future results. This content is for research and educational purposes only and not financial advice.

Choose from Platinum, Gold, and Silver packages
Reach with 25–30% open rates and 0.5–1% CTR
Craft your own custom ad—from banners to tailored copy
Perfect for Crypto Exchanges, SaaS Tools, DeFi, and AI Products