🕒 Posted on: 6/5/2025 5:00:05 PM UTC

Binance Research: RWA Token Market Soars 260% to $23B as Private Credit Dominates H1 2025

The tokenized real-world asset (RWA) market has experienced explosive growth in the first half of 2025, surging 260% to a $23 billion valuation, according to a Binance Research mid-year report. The sector’s expansion has been primarily driven by private credit, which now accounts for 58% of all tokenized RWAs, alongside growing adoption of treasury products like BlackRock’s BUIDL fund and protocols such as Tradable.

This article breaks down the key findings from Binance Research, explores the role of private credit in RWA growth, and examines how institutional adoption is reshaping decentralized finance (DeFi).

RWA Market Growth: A 260% Surge Fueled by Private Credit

The RWA tokenization sector has emerged as one of the fastest-growing segments in crypto, with its total market capitalization skyrocketing to $23 billion—a 260% increase since the beginning of 2025. Binance Research attributes this surge to:

Private credit dominance (58% share): Institutional and retail investors are increasingly turning to tokenized private debt for higher yields compared to traditional fixed-income products.
Treasury products gaining traction: BlackRock’s BUIDL fund, alongside other yield-bearing stablecoins and tokenized bonds, has deepened liquidity in DeFi markets.
Enhanced on-chain utility: Protocols like Tradable are bridging traditional finance (TradFi) with DeFi, enabling seamless trading and settlement of RWAs.

The report highlights that while private credit leads the charge, other sectors—such as real estate and commodities—are also seeing increased tokenization activity.

Private Credit: The Driving Force Behind RWA Adoption

Private credit has become the cornerstone of RWA tokenization, making up nearly 60% of the market. Key factors behind its rise include:

Higher yields: Tokenized private loans often offer more attractive returns than traditional bank deposits or bonds.
Improved accessibility: Blockchain-based credit platforms allow smaller investors to participate in deals previously reserved for institutions.
Reduced counterparty risk: Smart contracts automate repayment terms, reducing reliance on intermediaries.

Major players in this space include institutional-grade lending platforms and asset managers leveraging blockchain for efficiency gains.

Institutional Adoption Deepens with BlackRock’s BUIDL & Circle’s NYSE Listing

Institutional interest in RWAs has surged alongside broader crypto adoption. Two major developments underscore this trend:

1. BlackRock’s BUIDL Fund Expands On-Chain Treasury Offerings

BlackRock’s tokenized treasury fund, BUIDL, has become a key liquidity provider in DeFi, allowing investors to earn yield on short-term U.S. government bonds via blockchain. Its success signals growing trust in tokenized traditional assets.

2. Circle’s NYSE Debut Marks a Milestone for Stablecoins

Circle Internet Financial, the issuer of the USDC stablecoin, went public on the New York Stock Exchange (NYSE) under the ticker CRCL. Trading was briefly halted after shares tripled their IPO price, reflecting strong investor confidence in stablecoin infrastructure.

These developments highlight how TradFi giants are increasingly integrating blockchain solutions into their operations.

Bitcoin Market Context: Volatility Amidst Long-Term Growth Signals

While RWAs thrive, broader crypto markets have faced turbulence:

Bitcoin (BTC) dropped to $104,000, down from recent highs amid profit-taking.
Analysts at Bitfinex suggest BTC could rebound to $125,000 if macroeconomic conditions improve.
Ethereum (ETH) remains under pressure, with sluggish network activity despite rising transaction fees.
Meme coins like Shiba Inu (SHIB) fell sharply, dropping 28% from May peaks.

Despite short-term volatility, Bitcoin’s hash rate continues hitting record highs—a bullish signal for long-term network security and miner confidence.

Regulatory Developments: DOJ Crackdown & Stablecoin Legislation

Regulatory actions continue shaping crypto markets:

The U.S. Department of Justice (DOJ) seized crypto and 145 domains linked to an alleged stolen credit card marketplace (exact amounts undisclosed).
The proposed GENIUS Act seeks to provide clearer stablecoin regulations in the U.S., addressing concerns over compliance and consumer protection.

These moves highlight ongoing efforts to combat illicit activity while fostering legitimate crypto innovation.

Conclusion: RWAs Redefining Crypto’s Role in Global Finance

The RWA sector’s rapid expansion underscores blockchain’s potential to revolutionize traditional finance. With private credit leading the charge and institutions like BlackRock and Circle embracing tokenization, the lines between TradFi and DeFi continue blurring. While broader crypto markets face short-term volatility, the growth of RWAs suggests a maturing industry with long-term staying power.

For more insights, read the full Binance Research report on RWA tokenization trends in H1 2025.