Tokenized Gold Overtakes Private Credit: RWA Hits $35.67 Billion

Key Points

The tokenized real-world asset (Real World Assets – RWA) sector is experiencing rapid growth, reaching a total value of $35.67 billion, excluding stablecoins. This marks a 2.91% increase over the past 30 days, underscoring the sector’s rising appeal among investors.

The RWA ecosystem now includes 539,898 unique blockchain wallets, up 9.54% month-over-month—a significant uptick in market participants. There are also 251 active issuers, offering a diverse range of tokenized asset products.

The most notable event this period is tokenized gold surpassing private credit to claim the second and third spots globally. This shift signals investors’ growing preference for safe-haven assets amid market volatility. Additionally, the period saw important national-level developments, including new regulations and involvement from major financial institutions.

Market Overview

Tokenized real-world assets (excluding stablecoins) have reached $35.67 billion, reflecting 2.91% growth in the past 30 days. This expansion is powered by increasing adoption from traditional financial institutions and regulatory advancements.

The number of unique wallets climbed to 539,898, up 9.54% month-on-month, indicating rising interest from both individual and institutional investors. With 251 active issuers, the industry enjoys healthy competition and extensive product diversity.

BlackRock’s BUIDL Fund continues to lead the market at $2.325 billion, cementing BlackRock’s status as a pioneer in asset tokenization. The fund primarily invests in tokenized US Treasuries, giving investors access to traditional assets via blockchain technology.

Tokenized gold products have reached a combined $2.921 billion, with Tether Gold (XAUT) holding second place at $1.576 billion and Pax Gold (PAXG) third at $1.345 billion. The growth of tokenized gold highlights strong demand for safe-haven assets and value storage during times of economic uncertainty.

Key trends include the launch of Kyrgyzstan’s gold-backed stablecoin USDKG—a milestone for sovereign, asset-backed digital currencies. Saudi Arabia’s first tokenized real estate transaction signals major potential for the Middle Eastern property market. VARA Dubai’s final stablecoin regulatory framework sets a robust legal foundation for issuance and trading, while Canada’s inclusion of stablecoin rules in the 2025 federal budget highlights the country’s regulatory commitment. The Basel Committee’s adjustments to capital requirements for high-quality tokenized assets further empower banks’ market participation.

Top 5 Tokenized Real-World Assets

According to RWA.xyz, these are the top five tokenized assets by market value:

BlackRock’s BUIDL Fund leads with $2.325 billion, despite a 7.89% drop over the past week and an 18.47% decline in 30 days. This decrease could result from portfolio rebalancing or withdrawals by large investors, but the fund’s dominant size signals ongoing strong confidence.

Tether Gold (XAUT) and Pax Gold (PAXG) hold the second and third positions, totaling nearly $3 billion. Both showed slight short-term declines, mirroring global gold price volatility. Their high rankings demonstrate that tokenized gold is becoming a preferred option for many investors.

Syrup USDC by Maple Finance, representing private credit, is fourth at $1.269 billion. The product rose 3.79% in 7 days, reflecting strong demand for decentralized lending solutions.

Circle USYC is fifth at $1.074 billion, with a striking 37.41% increase over 30 days. This yield-bearing stablecoin, backed by US Treasuries, appeals to investors seeking returns from stable assets.

Top 5 RWA Protocol & Infrastructure Tokens

Infrastructure tokens play a crucial role in supporting the RWA ecosystem:

Chainlink (LINK) leads with a market cap of $8.38 billion, up 15.03% in the past week. Chainlink provides oracle services, enabling smart contracts to interact with real-world data and verify asset reserves—an essential element for RWA products that require collateral verification.

Stellar (XLM) is second at $7.19 billion, up 15.36%. Stellar excels at cross-border payments, facilitating rapid, low-cost asset and currency transfers. It’s especially suitable for RWA applications with international payment needs.

Avalanche (AVAX) ranks third with $5.58 billion, up 16.18%. Avalanche supports custom subnet creation, letting institutions build compliant blockchains that stay connected to the mainnet.

Hedera (HBAR) holds fourth at $5.40 billion, posting the largest seven-day gain at 19.56%. Hedera’s enterprise-grade distributed ledger is designed for speed and low transaction costs.

Tether Gold (XAUT) also features here at $1.52 billion, reflecting its dual status as both a tokenized asset and a key infrastructure instrument in the digital gold market.

Stablecoin Market Overview – The Main Liquidity Layer for RWA

Stablecoins are a vital bridge between traditional finance and tokenized real-world assets, providing stable liquidity and enabling seamless movement of capital between RWA products without price volatility concerns.

The stablecoin market’s total capitalization stands at $297.72 billion, down 0.47% over the past 30 days—likely as some investors shift to higher-yield assets amid rising interest rates.

Holder wallets have reached 203.30 million, up 3.03% month-over-month. This increase signals broad adoption, not just in the crypto community but also in real-world payment use cases.

Leading issuers include USDT ($183.6 billion, down 0.53% for the week) and USDC ($72.7 billion, down 0.80%). Tether’s USDT remains the largest stablecoin, with over 60% market share. Circle’s USDC is second, valued for its transparency in reserve reporting.

PayPal’s PYUSD stablecoin has risen to $3.6 billion, up 3.23% for the week, driven by deeper integration into PayPal’s payment network and widespread user access for daily transactions.

USDtb fell to $1.3 billion following reserve restructuring to ensure sustainability and compliance with new regulations.

Yield-bearing stablecoins—including rcUSD+, sUSDe, and USYC variants—now have a combined circulating supply of over $15 billion. These products allow holders to earn interest or staking rewards, offering additional value over traditional stablecoins.

Annual on-chain stablecoin transfer volume still exceeds the combined global transaction volume of Visa and Mastercard, demonstrating stablecoins’ importance as a global payment method, particularly for cross-border and remittance use cases.

Stablecoins are the primary entry and exit points for virtually all RWA transactions. Investors can easily convert between fiat and stablecoins via exchanges or OTC services, then use stablecoins to purchase tokenized assets such as bonds, gold, credit, or real estate. This process is fast, low-cost, and available 24/7, outperforming traditional banking channels.

Weekly Highlights

This week saw multiple key developments across regions, ranging from national asset issuances to policy reforms and infrastructure progress.

National & Regional Issuances

Kyrgyzstan launches gold-backed USDKG stablecoin

The National Bank of Kyrgyzstan has officially issued USDKG, the first national stablecoin in the region backed 1:1 by physical gold. USDKG is issued on BNB Chain and audited by a Big Four accounting firm, with the initial batch valued at $50 million.

The public blockchain application lets anyone transparently verify the amount of gold collateral. Every USDKG token represents a specific amount of gold held in the national treasury, subject to periodic audits.

Significance: This is Central Asia’s first sovereign commodity token, marking a major step in national adoption of blockchain for reserve management. USDKG boosts Kyrgyzstan’s financial sovereignty, reduces reliance on the US dollar, and attracts international institutional capital. The initiative could become a blueprint for other countries seeking to launch asset-backed digital currencies.

Saudi Arabia completes first tokenized real estate transaction

REGA, a blockchain real estate platform, has completed the first full on-chain property transfer in Saudi Arabia. The deal used a fractional ownership model, letting multiple investors co-own a single property.

The transaction used the newly digitized national real estate registry, ensuring legality and enforcement under Saudi law. This model allows retail investors to access premium real estate with limited capital.

Significance: This transaction establishes the legal groundwork for tokenized real estate across the Gulf Cooperation Council (GCC), unlocking liquidity for a $100+ billion property market and enabling international capital to invest in Middle Eastern real estate. It is a major milestone in Saudi Arabia’s Vision 2030 economic modernization plan.

Legal & Policy

VARA Dubai releases final stablecoin regulatory framework

The Dubai Virtual Asset Regulatory Authority (VARA) has finalized its licensing regime for fiat-pegged stablecoins. Issuers must maintain 100% reserves in high-liquidity assets, perform daily audits, and publish transparent reports.

This framework excludes all algorithmic stablecoins due to high stability risks. Only fully collateralized stablecoins backed by cash, government bonds, or equivalent liquid assets are permitted.

Significance: The regulation ensures transparency and safety for Dubai’s stablecoin market, building investor trust. VARA aims to attract over $5 billion in licensed stablecoins by 2026, positioning Dubai as the region’s legal stablecoin hub and a global digital finance center.

Canada adds stablecoin regulation to the 2025 federal budget

The Canadian government has introduced a stablecoin regulatory framework in its 2025 federal budget—the first federal law covering this sector. The law applies to fiat-backed stablecoins, requiring full reserves and Bank of Canada oversight.

Issuers must register with regulators, hold reserves at Canadian banks, and undergo regular audits. The law outlines clear responsibilities for all parties in case of incidents.

Significance: This is the first G7-level recognition of payment stablecoins and tokenized securities. Canada is among the earliest developed nations with a comprehensive stablecoin framework, setting a global precedent and encouraging financial institutions to adopt blockchain technology.

Basel Committee finalizes new capital requirements

The Basel Committee on Banking Supervision has finalized capital rules for tokenized assets. Starting January 2026, high-quality tokenized assets will carry the same risk weights as traditional securities.

Banks holding tokenized bonds or equities will not need to reserve more capital than for similar traditional securities. The rules apply to assets issued by reputable, fully compliant organizations.

Significance: The new framework significantly lowers capital costs for banks in the RWA market, removing a major barrier to tokenized asset adoption and accelerating the global digital transformation of finance.

Organizations & Infrastructure

Tether invests in Parfin

Tether, the issuer of USDT, has made a strategic investment in Parfin, a custody, tokenization, and payments platform serving Latin America. This partnership enables deep USDT integration across Parfin’s services.

Parfin currently supports major banks and financial institutions in Brazil, Argentina, and throughout the region. The collaboration expands USDT’s enterprise use cases, including B2B payments and trade finance.

Significance: This investment strengthens Tether’s leadership in fixed-income tokenization and regulated trade finance across Latin America’s $1.5 trillion crypto market—one of the world’s fastest-growing regions for crypto adoption. The move extends Tether’s reach beyond trading into broader financial applications.

HSBC launches tokenized USD deposits

HSBC, one of the world’s largest banks, will offer tokenized USD deposits on blockchain for institutional clients in the US and UAE starting in the first half of 2026. These are on-balance-sheet deposits tokenized for blockchain settlement.

Tokenized deposits enable 24/7 instant payments and integration with smart contracts. Unlike stablecoins, tokenized deposits remain bank liabilities and are covered by deposit insurance.

Significance: HSBC is the first global systemically important bank (G-SIB) to bring on-balance-sheet deposits on-chain for 24/7 payments—a major integration of traditional finance with blockchain and a direct competitor to stablecoins in enterprise payments.

Securitize partners with Plume Network

Securitize, a leading tokenization platform, has partnered with Plume Network to launch managed funds on a specialized Layer 2 for RWA. Funds from Hamilton Lane and other asset managers will be available on Plume.

Plume Network is designed for RWA, featuring built-in compliance, on-chain KYC, and cross-chain compatibility, with over 280,000 registered holders.

Significance: This partnership connects traditional capital to 280,000+ on-chain holders, creating secondary market liquidity. Investors can trade tokenized fund products more easily, democratizing access to top-tier funds previously reserved for institutions or high-net-worth individuals.

Dinari integrates LayerZero for multi-chain on-chain securities

Dinari has adopted LayerZero’s Omnichain Fungible Token (OFT) technology to enable native cross-chain transfers for over 200 tokenized US stocks and ETFs. This allows security tokens to move seamlessly across blockchains without intermediaries.

OFT technology ensures transaction atomicity—a token only exists on one chain at a time—eliminating asset integrity risks. Investors can trade tokenized Apple or Tesla shares on Ethereum, then transfer to Arbitrum or Polygon for lower gas fees.

Significance: This innovation eliminates market fragmentation, supports centralized liquidity, and enables 24/7 global trading of compliant tokenized securities. International investors can trade US stocks without being limited by NYSE hours—a major step toward a continuously operating global securities market.

Summary

The tokenized real-world asset market has reached $35.67 billion, with tokenized gold surpassing private credit to become the world’s second and third largest RWA categories. This reflects investors’ growing preference for safe-haven assets amid economic uncertainty.

Recent months have seen simultaneous developments in national issuances, regulatory frameworks, and institutional infrastructure across regions. Kyrgyzstan’s gold-backed national stablecoin paves the way for others, while Saudi Arabia’s first tokenized real estate transaction unlocks a market worth hundreds of billions of dollars.

On the regulatory front, Dubai VARA has published a comprehensive stablecoin framework, Canada has legislated stablecoin rules in the federal budget, and the Basel Committee has revised capital requirements for high-quality tokenized assets—establishing a robust legal foundation for sector growth.

Major financial institutions, such as HSBC, are launching tokenized deposits, while Tether is expanding into Latin America through Parfin. Securitize’s partnership with Plume Network boosts secondary market liquidity, and Dinari’s LayerZero integration enables multi-chain trading.

These simultaneous advances signal that the RWA sector is entering a new growth phase, with more participation from governments, regulators, and major financial institutions. The market is expected to surpass $50 billion by year-end, excluding stablecoins.

FAQ

What is tokenized gold, and how does it differ from traditional gold investment?

Tokenized gold converts physical gold into a digital token on blockchain. Compared to traditional gold, it offers greater transparency, allows for fractional investments, and provides easier trading on digital platforms.

What is RWA (tokenization of real-world assets)? Why can private credit also be tokenized?

RWA refers to converting physical assets into blockchain tokens to increase liquidity and access global markets. Private credit can be tokenized because it produces steady cash flow, enables fractional ownership, attracts global investors, and lowers financial intermediation costs.

Why can the tokenized private credit market reach $35.67 billion? What is the significance of this market size?

The tokenized private credit market has reached $35.67 billion due to higher liquidity and global accessibility. This demonstrates RWA’s enormous potential, opening new financial opportunities in the Web3 ecosystem.

What risks are involved in investing in tokenized gold and tokenized private credit?

These products carry market volatility risk, credit risk, regulatory uncertainty, potential liquidity constraints, and technical risks related to tokenization.

How can you buy and trade tokenized gold products? What are the requirements?

Choose a reputable platform, understand trading fees, ensure account security, and confirm the platform is properly licensed. You must have a verified account to start trading tokenized gold.

What advantages does tokenized gold offer over traditional gold ETFs?

Tokenized gold provides greater liquidity, more flexible peer-to-peer trading, and enhanced safety and transparency through blockchain—outperforming traditional gold ETFs.

How does tokenization of private credit ensure asset authenticity and security?

Through legal verification of the underlying assets, cross-border financial structuring, and blockchain technology. Smart contracts embed risk controls, tightly linking on-chain tokens to off-chain assets. Regulatory compliance is essential for investor protection.

What is the future outlook for the RWA sector? How will it impact traditional finance?

The RWA sector has significant growth potential and will expand rapidly as blockchain technology advances. Tokenization can enhance transaction efficiency, lower costs, and increase transparency in traditional finance, driving deep integration with decentralized finance and reshaping the global financial ecosystem.