The tokenized Real World Assets (RWAs) market has seen a surge of 309% over the past two years on public blockchains, according to ARK Invest’s The DeFi Quarterly report. The total value of RWAs tokenized on-chain reached approximately $32 billion as of September 30, 2025. This signals an acceleration in bridging traditional financial assets with decentralized ledger technology.
Private credit and U.S. treasuries
The majority of this growth stems from the tokenization of private credit, which has emerged as the market leader. It is now valued at roughly $17 billion and accounts for 72% of the RWA market’s expansion.
Apart from private credit, the tokenization of U.S. Treasury debt has also become a growth factor. This product offers high, stable on-chain returns, making it particularly catching for decentralized applications and stablecoin providers looking for secure, liquid collateral. Other tokenized assets contributing to the market include institutional alternative funds, real estate, and commodities.
Ethereum ecosystem’s contribution
The Ethereum ecosystem stands as the leading contributor to the shift. Ethereum and its Layer 2 (L2) scaling solutions together account for 77% of the total RWA value on public blockchains. This makes the Ethereum Virtual Machine (EVM) ecosystem the preferred environment for institutional tokenization efforts.
The distribution of RWA value is concentrated, with Ethereum Mainnet holding the largest share at 52.2%. Layer 2s collectively account for 25% of the RWA market value, with ZKsync Era being the largest L2 contributor at 13.2% of the overall RWA value, followed by Polygon (6.16%) and Arbitrum (4.97%).
Also Read: Avalon Labs Launches AI-Powered RWA Marketplace on BNB Chain
