Tokenized versions of U.S. Treasuries and traditional stocks have surged to record highs in 2025, driven by institutional demand for blockchain-based efficiency and yield in a volatile economic environment. This growth reflects broader adoption of real-world asset (RWA) tokenization, where assets like government bonds and equities are digitized on blockchains, enabling fractional ownership, 24/7 trading, and reduced intermediaries. Market data shows tokenized treasuries alone exceeding $8 billion in value by late 2025, with stocks following suit through platforms offering tokenized shares of major companies.

✏ Drivers of Tokenization Boom

Major players like BlackRock, Franklin Templeton, and Ondo Finance have launched tokenized treasury funds, such as BlackRock's BUIDL, which captured over 40% market share and grew 370% year-to-date, fueled by stablecoin integrations and regulatory nods. Tokenized stocks, including representations of blue-chip equities, benefit from SEC's implicit approvals for compliant wrappers, allowing on-chain trading without full security registration. This expansion, up 250% from 2024, stems from lower costs—up to 70% savings—and global accessibility, particularly amid U.S. tariff hikes boosting demand for secure yields.

✏ Market Size and Projections

The overall RWA sector hit $33 billion by October 2025, with treasuries leading at $8.8 billion and tokenized stocks contributing to a projected $24 billion total, marking 300% growth over three years. Private credit dominates at 61%, but treasuries and equities are fastest-growing due to their liquidity and low risk, with forecasts eyeing $1.5 trillion by year-end if regulations like the GENIUS Act advance stablecoin frameworks. Institutional involvement, at 70% of capital, underscores confidence in tokenized assets' role in bridging traditional finance and crypto.

✏ Challenges and Future Outlook

While records signal maturity, hurdles include regulatory clarity for tokenized stocks, which face limits on retail access, and interoperability issues across blockchains.