RWA Tokenization Stalls at $25B as ETF Inflows Soar
RWA tokenization has stalled at a $25B market cap, trailing weekly ETF inflows of over $25B despite a 260% surge in H1 2025. According to JPMorgan, traditional banks and asset managers remain on the sidelines, leaving crypto-native firms and VCs to drive this niche. Demand for tokenized U.S. Treasuries and private credit is rising, and institutions like JPMorgan (Project Guardian), Kinexys and Goldman Sachs are exploring platforms. RWA tokenization offers predictable yields and 24/7 trading, appealing to conservative investors. However, ETFs maintain dominance with superior liquidity, regulation and depth. Meanwhile, South Korea’s FIU launched a 50M-won AML review of stablecoin transfers to align with global standards by late 2025. Traders should monitor institutional sentiment and stablecoin rules, which could affect liquidity and risk in tokenized assets.
Neutral
The report highlights stagnation in RWA tokenization compared to ETF inflows, indicating limited institutional interest, while stablecoin regulation intensifies. This mixed outlook suggests no immediate catalyst for major crypto price movements. Traders should note potential long-term benefits of RWA tokenization growth and clearer stablecoin compliance, but short-term market impact is likely minimal.