Tokenization of real-world assets (RWAs) is widely regarded as one of the biggest transformations in modern finance. Major banks, asset managers, and investment firms continue pouring billions of dollars into the sector, while analysts predict it could grow into a multi-trillion-dollar market over the coming years. However, a new report reveals a surprising reality: more than half of today's tokenized asset market shows virtually no on-chain activity.
A recent market analysis reveals that behind the impressive growth of tokenization lies a significant challenge. While many real-world assets have been tokenized on blockchain networks, a large portion of them see little to no trading or transfer activity between investors.
More Than $32 Billion Hasn't Moved
The research analyzed approximately $60 billion worth of tokenized real-world assets across more than 7,000 products spanning twelve different asset classes.
The findings were striking.
Out of 1,289 tokenized assets valued at more than $100,000, 910 recorded no transfers during the observed week. These inactive assets represented approximately $32.9 billion, accounting for roughly 56% of the total market measured by transfer activity.
Only 379 assets showed weekly on-chain movement, representing approximately $26.2 billion in active value.
Large Market Size Doesn't Necessarily Mean High Liquidity
At first glance, the data may appear alarming. However, researchers emphasize that low transfer activity does not automatically indicate failure.
The report distinguishes between two primary categories of tokenized assets.
The first consists of distributed assets, which can move freely across public blockchains, be transferred between wallets, traded on secondary markets, or integrated into decentralized finance (DeFi) applications.
The second category includes represented assets, where blockchain primarily functions as a digital record of ownership or an internal accounting ledger rather than a platform for active trading.
This distinction is important because approximately $27 billion of the inactive assets belong to the represented asset category. In these cases, low transfer activity reflects the intended design of the products rather than a lack of adoption.
Infrastructure Remains the Biggest Challenge
According to the report, the next phase of tokenization will depend less on launching new assets and more on building the infrastructure required to support them.
Efficient settlement systems, regulatory compliance, transfer controls, collateral management, deeper secondary markets, and improved investor access will all be essential for broader adoption.
Without stronger infrastructure, many tokenized assets may remain little more than digital ownership records rather than becoming fully functional financial instruments.
Tokenization Continues to Expand
Despite these challenges, tokenization remains one of the fastest-growing sectors in digital finance.
Major financial institutions including BlackRock, Franklin Templeton, JPMorgan, and leading market infrastructure providers continue investing heavily in tokenized securities, digital funds, and blockchain-based financial products. The market for tokenized U.S. Treasury securities and other real-world assets has also continued to expand rapidly.
Rather than suggesting that tokenization is failing, the new research highlights that the industry is entering its next stage of development. Simply placing assets on a blockchain is no longer enough. The long-term success of tokenization will ultimately depend on whether these assets become liquid, widely accessible, and actively used throughout the global financial system.
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