Real World Assets (RWA) tokenisation refers to the process of representing traditionally off-chain assets – government bonds, corporate bonds, real estate, commodities, private credit, and equities – as blockchain tokens, enabling them to be held, traded, and used in DeFi. RWA tokenisation was the dominant institutional DeFi narrative of 2024-25, driven by high interest rates (making tokenised T-bills attractive) and major asset managers (BlackRock, Franklin Templeton) entering the space. Benefits of tokenisation: 24/7 trading (vs traditional market hours), fractional ownership (own $100 of a $100M bond), instant settlement (vs T+2 in traditional markets), global accessibility, and DeFi composability (use tokenised bonds as collateral on Aave). Total on-chain RWA value surpassed $15 billion in 2024. Key protocols include Ondo Finance (tokenised T-bills), Maple Finance (private credit), Centrifuge (trade finance), and BlackRock BUIDL fund (money market fund on Ethereum). Regulatory frameworks are evolving to accommodate RWA tokenisation across major jurisdictions globally.
Example: Example: BlackRock launched BUIDL – the BlackRock USD Institutional Digital Liquidity Fund – on Ethereum in March 2024. Accredited investors subscribe with USDC, receive BUIDL tokens representing shares in a money market fund earning T-bill yields (~5%). BUIDL became the largest tokenised US Treasury fund within weeks, accumulating $500M+, signalling mainstream RWA adoption.
Learn more: Tokenized Treasuries Tracker
