By 2025, the market for tokenized real-world assets (RWA) is expected to approach $300 billion. Some institutions predict that by 2034, this number could rise to $30 trillion. This is not just talk—this week, the supply of stablecoins on the Ethereum chain reached a historic high of $165 billion.

Stablecoins are undoubtedly the 'locomotive' of RWA development. But one question looms: Can blockchain infrastructure really support such massive demand in the face of high fees, cumbersome experiences, and regulatory barriers?

Aishwary Gupta, head of global payments at Polygon Labs, provides the answer: The technical issues are fading, and the new challenges are regulation and liquidity.

Four years of transformation: from adversity to dawn

Looking back to 2021, the on-chain experience at that time was far from what it is today. Users had to try repeatedly across five platforms, with fees as high as 5%–10%, and deposit difficulties as daunting as climbing a mountain. Today, fees have significantly decreased, the deposit and withdrawal experience has improved, and the process is smoother. However, with the improvements in scalability, regulatory arbitrage and lack of liquidity have become new bottlenecks.

"You can transfer $1 billion on-chain for just one cent, but the real barrier is who is qualified to compliantly provide deposit and withdrawal services," Aishwary stated.

Global Regulatory Map: Who is Leading?

Currently, the United States, Singapore, Europe, and the Middle East are forming the four core markets for RWA.

  • United States: After the implementation of the (GENIUS Act), clear standards for stablecoin issuance have been provided, reversing the previous regulatory uncertainty.

  • Singapore: Through systems such as the (Payment Services Act), a clear licensing system has been established, attracting giants like Crypto.com.

  • Europe: The MiCA regulation brings steady but slow progress.

  • Middle East: Taking Abu Dhabi as an example, detailed regulations for the issuance and reserve management of stablecoins have been established.

Although many institutions are trying tokenized stocks, the market enthusiasm is far below expectations. The reason is simple: Apple stocks are already available to everyone, and the on-chain version does not open up new demand.

In contrast, non-dollar stablecoins and the tokenization of commodities (gold, silver, oil, etc.) are the more promising directions. Globally, non-dollar stablecoins already account for 30% of cross-border transaction volume outside the United States, while the tokenized commodity market is expected to reach $25 billion by 2024, with gold tokens alone exceeding $1.7 billion.

This is also why projects like Ondo and Mineralfi keep emerging in the market. They move real assets like gold onto the chain through compliant structures, not only enhancing liquidity but also broadening financial application scenarios. From cross-border payments and financing to the anchoring of stablecoins, the potential of RWA goes far beyond just 'digital assets'.

The Road to $30 Trillion

In just a few years, RWA has evolved from a conceptual pilot to a global financial infrastructure. Traditional giants like Goldman Sachs and Bank of New York Mellon are actively investing in tokenized government bonds, while emerging innovative projects continue to explore asset areas such as gold, private credit, and green energy.

In the next decade, RWA will not only be a game for financial institutions but may also become part of the daily lives of businesses and individual investors. When gold can be easily placed on-chain and global bond investment can be participated in for just $50, the boundaries of the financial world will be completely rewritten.