The tokenized asset market has exceeded $34 billion, marking a tenfold increase since mid-2024, primarily driven by tokenized U.S. Treasury products. Data from rwa.xyz indicates that U.S. Treasury-linked products have reached approximately $16 billion by May 2026, with commodities and asset-backed credit also contributing significantly to the market's growth. Institutional adoption has expanded as financial firms transition blockchain initiatives from testing to operational systems, supported by the GENIUS Act, which established a federal framework for payment stablecoins in the U.S. The GENIUS Act, effective since July 2025, mandates one-to-one reserve backing for stablecoins, boosting demand for short-duration Treasury products. This regulatory clarity has spurred financial institutions to introduce tokenized Treasury products for collateral management and yield-bearing systems. The market's composition has diversified, with Treasurys and commodities now accounting for about two-thirds of the total value, as other asset classes like tokenized equities and real estate gain traction.