Tokenized RWAs Rise on Ethereum and Solana During Crypto Market Decline

TLDR

• Tokenized real-world assets increased 13.5% in value over the past 30 days while the broader crypto market lost $1 trillion
• Ethereum led growth with $1.7 billion in net gains, followed by Arbitrum at $880 million and Solana at $530 million
• Tokenized US Treasurys and government debt remain the largest category with over $10 billion in outstanding products
• Major institutions including BlackRock, JPMorgan and Goldman Sachs have become active participants in tokenized assets
• BlackRock brought its BUIDL tokenized Treasury fund to Uniswap, marking its first formal move into decentralized finance

Tokenized real-world assets continued growing through January and early February even as cryptocurrency markets faced heavy selling pressure. The total value of onchain RWAs increased 13.5% over 30 days according to data from RWA.xyz.

The growth came as the broader crypto market lost about $1 trillion in value during the same period. This contrast highlights the different dynamics between traditional tokenized assets and native cryptocurrencies.

Ethereum recorded the largest increase in tokenized asset value with $1.7 billion in net growth. Arbitrum followed with $880 million and Solana added $530 million in tokenized assets.

All major blockchain networks tracked by RWA.xyz showed increases in tokenized asset values as of Monday. The figures represent the total onchain value of tokenized assets issued or circulating on those networks.

The growth reflects both higher asset issuance and more wallet addresses holding these assets. More tokenized securities are being brought onto public blockchains while participation expands.

Growth in Treasury and Credit Products

Tokenized US Treasurys and government debt make up the largest RWA category. These products have over $10 billion in outstanding onchain value.

Flows into tokenized Treasurys continued during the 30-day period. Tokenized stocks and exchange-traded products also posted gains.

When excluding stablecoins, net growth in tokenized securities accelerated over the past month. This includes Treasurys, private credit and other yield-bearing instruments.

Asset managers are using public blockchains more to issue and settle tokenized versions of traditional financial products. This points to deeper institutional participation in the space.

Tokenized money market funds are evolving beyond simple yield vehicles. They are starting to serve as collateral in certain trading and lending markets.

Major Institution Activity

BlackRock, JPMorgan and Goldman Sachs have become active participants in tokenized assets. These major financial institutions are building out blockchain-based products.

BlackRock made its first formal move into decentralized finance last week. The asset manager brought its USD Institutional Digital Liquidity Fund to Uniswap.

The BUIDL fund is a tokenized US Treasury product. Its integration with Uniswap represents a step toward using tokenized assets in DeFi protocols.

The crypto market has been unwinding since October. Losses intensified in January across digital assets.

Derivatives markets contributed to the stress with a large deleveraging event in October. This triggered broader weakness that spread through crypto markets.

Market conditions have not fully recovered from the October selloff. Sentiment remains fragile even as traditional equity markets trade near record highs.

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