RWA Tokenization Supercycle: Real-World Assets in 2026

Bernstein analysts are calling 2026 the start of a tokenization "supercycle." With RWA markets projected to double from $37 billion to $80 billion this year, the bridge between traditional finance and crypto is no longer theoretical.

The Numbers Behind the Hype

Real-world asset tokenization surged 260% in the first half of 2025, jumping from $8.6 billion to over $23 billion. By year-end, the market exceeded $36 billion, excluding stablecoins.

The growth is accelerating. Bernstein projects RWA tokenization will reach $80 billion by the end of 2026, while long-term forecasts range from McKinsey's conservative $2 trillion by 2030 to Boston Consulting Group's ambitious $16-20 trillion.

$36B

RWA Market (Late 2025)

$80B

2026 Projection

260%

H1 2025 Growth

BlackRock Sets the Standard

BlackRock's BUIDL fund has become the benchmark for institutional tokenization. Launched in March 2024, it captured $2.38 billion in assets under management, representing roughly 32% of the entire tokenized Treasury market.

The fund peaked at nearly $2.9 billion in mid-2025 with over 40% market share. It pays daily interest, maintains 1:1 backing by real-world assets, and operates across seven chains: Ethereum, Solana, Polygon, Avalanche, Arbitrum, Optimism, and Aptos.

What makes BUIDL significant is its acceptance as collateral on major platforms like Crypto.com and Deribit. Traditional Treasury funds cannot serve this function, creating a clear advantage for tokenized versions.

State Street and Galaxy Enter the Ring

In December 2025, State Street and Galaxy Digital announced SWEEP, a tokenized liquidity fund launching on Solana in early 2026. Ondo Finance will seed the fund with $200 million.

State Street brings $50 trillion in custodied assets and decades of cash management expertise. Galaxy provides tokenization technology. Together, they represent the most significant traditional finance commitment to on-chain liquidity products.

SWEEP offers 24/7 liquidity using PYUSD stablecoins, daily yield accrual, and same-day redemptions. Future expansion will include Stellar and Ethereum through Chainlink's Cross-Chain Interoperability Protocol.

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Solana was chosen for SWEEP due to its low-cost, high-throughput architecture. The network's transaction speeds and minimal fees make it attractive for institutional applications requiring frequent settlements.

The Ondo Finance Phenomenon

Ondo Finance has emerged as the second-largest player in tokenized U.S. Treasuries with roughly 17% market share. The platform's total value locked jumped from $40 million to over $534 million in 2024, reaching $1.6 billion by September 2025.

USDY, Ondo's flagship product, offers approximately 4.25% APY backed by short-term U.S. Treasuries and bank deposits. The token operates across Arbitrum, Ethereum, Mantle, and Solana.

Ondo's 2026 roadmap is aggressive. The platform plans to launch tokenized U.S. stocks and ETFs on Solana in early 2026. February will bring Ondo Chain, a permissioned Layer-1 blockchain designed specifically for regulated RWA applications.

The SEC closed its two-year investigation into Ondo in November 2025 without charges, providing regulatory clarity that competitors lack.

What Gets Tokenized?

The RWA market breaks into several categories, each with distinct dynamics:

Private Credit dominates with over $18.91 billion in active on-chain loans and $33.66 billion in cumulative originations. Platforms like Maple Finance have facilitated $3.5 billion in asset-backed loans.

U.S. Treasuries represent about $8.7 billion on-chain, or 45% of total RWA value. This sounds impressive until you realize it represents just 0.03% of the $28 trillion in issued U.S. Treasuries. The growth potential is vast.

Commodities account for over $3.5 billion, with gold dominating at $2.9 billion, roughly 80% of tokenized commodity activity.

✓Private Credit

$18.91B active loans
Highest yield potential
Growing institutional adoption

✓Treasuries

$8.7B on-chain
Most liquid category
Strongest regulatory clarity

The Institutional Shift

BlackRock's success with BUIDL triggered a competitive response. Franklin Templeton operates a $706 million tokenized fund. Fidelity recently filed with the SEC for "OnChain," a blockchain-powered Treasury money market fund. JPMorgan has already launched tokenized products.

The infrastructure is maturing to match. Nasdaq filed with the SEC in September 2025 to enable tokenized securities trading alongside traditional securities. Approval and launch by late 2026 would provide the first major U.S. exchange integration.

The Bank for International Settlements found that tokenized government bonds can reduce issuance and servicing costs by up to 1.2% of a bond's nominal value over its lifetime. When applied to trillions in outstanding debt, even small efficiency gains translate to billions in savings.

Regulatory Tailwinds

The regulatory environment has shifted from hostile to enabling. U.S. lawmakers advanced landmark legislation during "Crypto Week," including the GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act.

The SEC launched Project Crypto to study on-chain market infrastructure. Commissioner Hester Peirce stated the agency remains open to "multiple models of securities tokenization."

Globally, the UK launched its Digital Securities Sandbox. Singapore and Australia continue pilots under Project Guardian and Project Acacia. Japan expects a comprehensive crypto bill by 2026. Hong Kong, Singapore, and the UAE are positioning as digital asset innovation hubs.

The biggest tailwind for RWAs in 2026 is increasing regulatory clarity around what tokenized assets represent and how ownership is established. This matters because institutional capital requires legal certainty before deployment.

The Supercycle Thesis

Bernstein's supercycle prediction rests on several converging factors:

Stablecoins are expected to grow 56% year-over-year to approximately $420 billion by the end of 2026. Stablecoins serve as the primary on-ramp for RWA investment.

Equity tokenization will jump from 2% to 16% of total on-chain value, according to Bernstein's models. This represents a fundamental shift in how securities are issued and traded.

Prediction markets are projected to grow 100% to roughly $70 billion, demonstrating broader appetite for on-chain financial products.

Bernstein identified Robinhood, Coinbase, Figure, and Circle as "best tokenization proxies" for investors seeking exposure to the trend.

Risks and Limitations

RWA tokenization is not without challenges. Centrifuge experienced notable defaults in its credit pools, demonstrating that tokenization does not eliminate underlying asset risk.

The market remains concentrated. Ethereum dominates with roughly 70% of tokenized Treasury market cap ($5.3 billion) due to its mature ecosystem and established DeFi integration. This concentration creates dependency risk.

Regulatory clarity in the U.S. does not extend globally. European MiCA regulations, Asian frameworks, and emerging market rules create a patchwork of compliance requirements that complicate cross-border operations.

Liquidity for many tokenized assets remains thin. While Treasuries trade actively, more exotic RWAs can be difficult to exit at favorable prices.

What This Means for Investors

The RWA tokenization trend represents a structural shift rather than a speculative cycle. Traditional financial institutions are systematically rebuilding infrastructure on blockchain rails because efficiency gains are too substantial to ignore.

For crypto-native investors, the arrival of State Street, BlackRock, and Fidelity signals validation. These institutions do not experiment with capital at scale. Their entry indicates confidence in both the technology and regulatory trajectory.

For traditional investors, tokenized RWAs offer familiar assets with improved accessibility. A Treasury fund that pays daily, settles instantly, and serves as collateral across platforms provides tangible benefits over conventional alternatives.

The supercycle thesis may prove correct. The infrastructure is in place. Regulatory clarity is improving. Institutional capital is flowing. The question is no longer whether tokenization will reshape finance, but how quickly.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency and tokenized asset investments carry significant risk. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.