Real World Asset Tokenization Gains Institutional Momentum Amid Market Growth

The tokenization of real-world assets (RWAs) is rapidly gaining traction, sparking debate over whether it represents the future of finance or a speculative bubble. Market analyst Michael Van de Poppe believes RWAs could transform global markets in the coming years, pointing to the sector’s accelerating adoption by institutions.

The RWA market has grown significantly, rising from $29.6 billion to $72.85 billion in just a year—a 143% increase. This surge reflects growing confidence in tokenized assets that connect traditional finance (TradFi) with blockchain ecosystems. Van de Poppe notes that major players such as PayPal, Robinhood, and Ondo have already entered the space with stablecoins and tokenized stocks, signaling strong momentum.

A notable development comes from the London Stock Exchange Group (LSEG), which launched its Digital Markets Infrastructure (DMI) platform. The system places private funds—traditionally illiquid assets—on distributed ledger technology (DLT), making them easier to issue, trade, and settle. Because LSEG is trusted by banks, asset managers, and regulators, its move adds significant legitimacy to tokenized markets and could drive institutional adoption.

In the U.S., Nasdaq is also exploring rule changes to list tokenized stocks, further reinforcing confidence in RWAs. Van de Poppe sees these moves as “a big signal” that global finance is taking tokenization seriously. However, he cautions that the sector remains in its early stages, with regulatory clarity and infrastructure still maturing.

Investor interest is also evident in the altcoin ONDO, tied closely to RWA developments. ONDO has been consolidating between $0.90 and $1.06, forming a bullish Volatility Contraction Pattern (VCP). A breakout above $1.20 could push prices to $1.37 and beyond $1.90, though risks remain if broader market weakness persists.

With rising institutional involvement and expanding use cases—from tokenized treasuries to real estate and private equity—the RWA market appears far from saturation. Instead, it is emerging as one of the strongest narratives in the current crypto cycle, positioning tokenization as a core pillar of future finance.