The real-world asset (RWA) market is rapidly approaching a $20 billion valuation, driven by institutional capital moving on-chain. Five key protocols—RaylsLabs, OndoFinance, Centrifuge, CantonNetwork, and Polymesh—are leading this transformation by addressing diverse institutional needs such as privacy, efficiency, and compliance. This growth marks a significant leap from the $6-8 billion range at the start of 2024.
RaylsLabs focuses on providing privacy infrastructure for banks, while OndoFinance has expanded rapidly in tokenizing publicly traded stocks, boasting a total value locked (TVL) of $1.93 billion. Centrifuge has become a standard for private credit tokenization, with a TVL between $1.3 billion and $1.45 billion. CantonNetwork, supported by major Wall Street firms, aims to integrate blockchain into U.S. securities settlement, and Polymesh offers a compliance-focused blockchain for regulated securities.
The market's expansion is fueled by yield arbitrage opportunities, regulatory advancements, and mature custody infrastructure. However, challenges such as cross-chain transaction costs and privacy versus transparency conflicts remain. The next 18 months are crucial as these protocols test their scalability and adoption, potentially setting the stage for a trillion-dollar market by 2030.
RWA Market Nears $20 Billion as Protocols Compete for Institutional Capital
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