Stablecoins proved that tokenization works – for real! It’s the first billion-user use case in onchain finance. In 2024 alone, the asset class processed $27.6 tril in transaction volume. What started with USDT and USDC is now being scaled by BlackRock, Fidelity, and other traditional finance (TradFi) giants. What’s left for innovators? More than you expect.
Tokenization Works: Where Founders Should Focus Now
From stablecoins and treasuries to tokenized IP, identity, and AI, billions in real-world assets are moving onchain. Some markets are already crowded. Others are only getting started. Guess what? Both present tremendous opportunities for Web3 founders as the world moves toward a 24/7, borderless financial operating system. Discover where it works today, where it’s heading next, and what to build before institutions take over.
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Partners
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Institutional asset manager transforming traditional fund strategies into fully compliant, tokenized products that live onchain.
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Analytics hub for real-world asset tokenization, tracking capital flows, pricing, and liquidity across multiple chains.
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Singapore-based fintech bridging U.S. Treasuries onchain with yield-bearing treasury bill tokens and seamless DeFi integrations.
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2. Don’t Compete in Crowded Markets — Complement Instead
Some markets are crowding up. It doesn’t mean you can’t enter them. Find out how BlackRock’s BUIDL fund, Paxos gold (PAXG), and the $12 bil onchain private credit boom got to where they are today, and how TradFi moving in alters the landscape. Then you’ll understand how gaps like underserved regions and missing infrastructure may hold a golden egg for you.
3. New Frontiers: Where Identity, Data, and IP Become Market
A pristine landscape emerges when you move into entirely non-financial domains. No institutional dominance or standards, just lots of potential. From tokenized IP and digital identity to AI models, educational credentials, and even whiskey barrels, tokenization is evolving beyond money and into a realm of meaning. For founders, this is the white space. A rare moment where there are no playbooks — just primitives being written in real time.
Key Takeaways
- Tokenization works at scale and is about to reshape finance. With $27.6 trillion in stablecoin volume and $6 billion in tokenized treasuries, the infrastructure is live and adopted. Tokenization is no longer experimental.
- The biggest RWA markets are already saturated. Treasuries, stablecoins, and high-yield products are dominated by institutions like BlackRock, Fidelity, and others. Founders should think twice before launching copycats in these verticals.
- The opportunity is not in tokenizing more assets but in abstracting access to them. Building the Stripe, Plaid, or Robinhood of tokenized assets is a better bet than launching another stablecoin, gold, or bond token.
- Emerging markets are leapfrogging legacy finance via tokenization. Places like Nigeria, Kenya, Indonesia, and Brazil are testing tokenized bonds, agricultural assets, real estate, and grain-based credit before the US or EU.
- Tokenized private credit is working and quietly scaling. With over $12 billion in loans onchain, real-world borrowers and repayments are becoming normal in DeFi. Infrastructure and compliance layers are the next opportunity.
- Commodities are moving onchain, but usability is still a major hurdle. Gold, carbon credits, and uranium are being tokenized, yet liquidity is fragmented and integrations are weak. Founders can win by building the rails, not the tokens.
- Tokenization is expanding beyond finance into IP, education, AI data, identity, and even social capital. Founders can now build new markets around creator influence, reputation, and attention.
- The next stablecoin-level success won’t look like a currency. It might be a tokenized reputation layer, a programmable research NFT, or a spendable carbon token. These are the primitives being built now.
Led by
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Leon Waidmann
Head of Research
Conducted by
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Ananya Shrivastava
Research Analyst
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Olivia dela Rosa
Research Analyst
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Arin Soleymani
Head of Business Development
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Michał Moneta
Leader & Chief Strategy Officer
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Kade Garrett
Blockchain Writer
Contributors
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Chris Braithwaite
Content & Technical Writer
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Ruth M. Trucks
Head of Content
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Veronica Kirin
Content Writer
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Lucas De Melo
UX Designer
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Adewale Aloba
Graphic Designer
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Ashton Barger
Product Marketing Manager
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Carmen Indalecio
Business Development Manager
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Boris Agatić
Data Scientist
Thought leaders
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Marko Vidrih
Co-Founder, RWA.io
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Jenny Johnson
CEO, Franklin Templeton
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Anthony B
Head of Growth, Arca
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Jeremy Ng
CEO, Open Eden
How did we approach the research?
The research employed a structured, practical methodology designed to evaluate the real-world impact and potential business opportunities of tokenization. Combining hands-on primary research with secondary analysis, we aimed to provide clear insights for builders, investors, and operators in the tokenization space.
Methodology
Data Collection and Analysis
- Primary Research (Platform Testing):
- Conducted hands-on tests of tokenization platforms, including Nexo (Paxos Gold), Tether Gold, Maple Finance, Worldcoin, Story Protocol, and other RWA platforms, evaluating user experience, integration with DeFi, and overall usability.
- Secondary Sources:
- Analyzed quantitative data from leading analytics tools (RWA.xyz, Token Terminal, Dune Analytics) to track adoption, transaction volumes, and growth trends across key asset classes like tokenized treasuries, commodities, and identity solutions.
- Reviewed and synthesized third-party industry reports and market analyses from trusted research providers, ensuring comprehensive coverage of the market landscape and regulatory developments.
- Expert Insights:
- Leveraged insights and quotes from industry experts featured in our Onchain Heroes podcast series to deepen the qualitative context around practical adoption and market challenges.
Research Limitations
- Platform Accessibility:
Due to stringent KYC and compliance requirements, our team was unable to access or test all relevant platforms, which limited our direct, firsthand insights into specific tokenization services.
- Survey Exclusion:
Unlike previous research, this report did not include user surveys, reducing direct consumer feedback on tokenization adoption.
- Scope and Depth:
The research intentionally leaves some areas partially explored, such as advanced regional adoption patterns and emerging niche use cases, which will be addressed comprehensively in our upcoming members-only tokenization report.