2024 Public Chain RWA Annual Research Report: Market Deconstruction and Paradigm Change

In 2024, public chain RWA will experience explosive growth, heralding the rise of a new financial paradigm. Driven by the triple engines of institutions rushing to enter the market, continuous technological breakthroughs, and gradually clear supervision, RWA is accelerating from proof of concept to large-scale application. Innovative models such as asset tokenization, cross-chain interoperability, and smart contract automation continue to emerge, reshaping the financial ecology. However, structural problems such as liquidity stratification, return-risk mismatch, and legal challenges to asset control rights cannot be ignored. Looking forward to 2025, innovation in asset categories, evolution of technological paradigms, and reconstruction of regulatory frameworks will become the three main themes of RWA market development, injecting new momentum into the healthy development of RWA.

This article was contributed by Sanqing, a community contributor of RealtyX DAO.

Ⅰ Data Panorama: From Explosion to Structural Transformation

1.1 Total breakthrough and growth rate differentiation

 (Source: rwa.xyz )

• Total size of on-chain RWA: approximately US$15.4 billion by the end of 2024 (excluding stablecoins), an increase of approximately 80% year-on-year (2023 data: approximately US$8.6 billion)

• Growth rate differentiation characteristics:

• • U.S. Treasury bonds: up about 415% year-on-year (769 million → 3.96 billion)

  • Private credit: increased by about 48% year-on-year (6.656 billion → 9.828 billion)

  • Commodities and other assets: a year-on-year increase of approximately 32.6% (1.16 billion → 1.537 billion)

  • Real Estate Tokenization:

While the overall market is expanding significantly, different asset classes are showing a clear differentiation in growth rates: U.S. Treasuries have achieved super-high growth due to their safe-haven properties and institutional adoption, while private credit and commodities reflect the differentiated concerns of market participants in terms of risk, return and liquidity. Institutions are optimistic about the long-term prospects of real estate tokenization, and expect its compound annual growth rate to be close to 20%, suggesting that digital transformation and improved asset circulation efficiency will drive the large-scale implementation of this field.

1.2 Market structure evolution

In 2024, the RWA market will present a "dual-core drive, diversified expansion" pattern

• Dual-core drive: U.S. Treasuries (annual growth of 415%) and private credit (annual growth of 48%) together account for more than 85% of the market. The former benefits from macro-risk aversion demand and institutional entry, while the latter attracts allocation by relying on its high-yield characteristics.

• Diversified expansion: Traditional categories such as real estate and commodities are growing steadily, while emerging areas such as ESG assets, artworks, and supply chain finance are accelerating their penetration, jointly supporting market diversification.

Behind this layered expansion is the synergy of the three driving forces of technology, capital and regulation. The three major trends - liquidity reconstruction, large-scale implementation, and asset innovation - constitute the core context of market evolution.

Three major trends: from liquidity reconstruction to ecological prosperity

• Liquidity Premium Release: Blockchain Reshapes Pricing Logic

  • Technology empowerment: 24/7 trading and smart contracts reduce transaction costs by 30–90%, compress liquidity premiums, and increase RWA asset valuations.

  • Positive cycle: liquidity improves → attracting more issuers and investors → further reducing premiums, forming a market expansion flywheel.

• Large-scale application: Double breakthrough in institutions and infrastructure

  • Traditional finance enters the market: BlackRock (BUIDL Fund), Franklin, etc. launch compliant tokenized products to verify the RWA business model.

  • The rise of dedicated public chains: Layer 1 chains such as Plume and Mantra provide compliant and efficient tokenized infrastructure.

  • Pricing infrastructure: Chainlink oracles cover more than 70% of on-chain RWA assets, solving the problem of real price anchoring.

• Asset diversification: Evolution of “core-periphery” stratification

  • • Core dominance: Government bonds and credit remain dominant, but the differentiated growth rates (415% vs 48%) reflect differences in risk preferences.

    • Boundary expansion:

      • Digitalization of traditional assets: Real estate (19–21% CAGR) and commodities increase liquidity through tokenization.

      • Emerging categories emerge: long-tail assets such as ESG, luxury goods, and IP are accelerating on the blockchain, and supply chain finance (such as tokenization of accounts receivable) releases the financing potential of small and medium-sized enterprises.

The above three trends - liquidity reconstruction to reduce transaction friction, institutional-level infrastructure to enhance credibility, and asset expansion to release long-tail value - jointly promote RWA to a deeper level of penetration. Among them, real estate tokenization has become the most representative paradigm breakthrough due to its comprehensive integration of the three trends.

Focus Area: Paradigm Breakthrough in Real Estate Tokenization

At the same time, although other sub-sectors are relatively small in size, they still show continued rising market vitality, providing support for the diversified development of the RWA ecosystem.

• Growth trajectory: According to the optimistic forecast of the ScienceSoft research team, by 2030, the global tokenized real estate market will even reach a huge $3 trillion, accounting for 15% of real estate assets under management. They said that although the market is still in its early stages in 2024, the increasing adoption of tokenization technology by property owners and the growth of investor demand further verify the rationality of issuing real estate tokens.

• Strategic Value: By integrating liquidity enhancement, institutional compliance and multi-scenario applications, real estate tokenization has become a typical representative of the transformative potential of RWA, consolidating its core position in the broader RWA ecosystem.

The main application scenarios of real estate tokenization include:

Ⅱ Industry driving factors: analysis of the triple power engine

2.1 Institutional Entry

Institutions not only regard RWA as a new investment track, but also try to use public chains as underlying technology to optimize capital operations and improve operational efficiency. The entry of institutions will accelerate the maturity of the market, promote the improvement of industry infrastructure, and further expand the digital boundaries of real-world assets.

Strategic layout of traditional financial giants

• BlackRock launched BUIDL, a tokenized fund based on the Ethereum network, in March 2024. It mainly invests in cash, U.S. Treasury bonds and repurchase agreements, providing qualified investors with the opportunity to earn U.S. dollar returns. As of July 2024, BUIDL has managed assets of more than US$500 million, making it one of the largest tokenized Treasury funds.

• In addition, institutions such as Fidelity, JPMorgan Chase, and Citigroup have also made strategic arrangements in the RWA field.

The entry of institutions promotes the process of standardization and infrastructure improvement

• The entry of institutions not only brings funds and resources, but also promotes the standardization and infrastructure construction of the RWA market. Through cooperation with blockchain projects, traditional financial institutions are exploring the best practices of tokenizing real-world assets, which promotes the maturity of the market.

• BlackRock's BUIDL Fund works with blockchain projects such as Securitize and Maple Finance to ensure that tokenized products meet regulatory standards, and provides an on-chain credit market to promote the creation and trading of credit products. It also works with Circle to establish a USDC liquidity pool to achieve a 1:1 real-time exchange of BUIDL and USDC, enhancing the liquidity of tokenized products.

• JPMorgan Chase's Onyx digital asset platform uses blockchain to achieve tokenized ownership transfer of money market fund shares through a tokenized collateral network, allowing asset management companies and institutional investors to pledge or transfer fund shares as collateral, thereby improving capital efficiency.

2.2 Technological breakthroughs

Compliance Breakthrough

In order to ensure that blockchain applications comply with regulatory requirements such as Anti-Money Laundering (AML) and Know Your Customer (KYC), many projects are exploring embedding compliance mechanisms directly into blockchain systems. For example:

• Tokeny Solutions developed the ERC-3643 token standard, which integrates identity management and transfer restrictions directly into token smart contracts, enabling issuers to perform investor qualification, KYC/AML checks, and compliance rules on-chain. For example, BlocHome uses the ERC-3643 standard to issue tokenized real estate, which enables project owners to automatically verify the identity of investors and ensure that they meet regulatory requirements. According to BlocHome, compliance costs have been reduced by 90% after using the ERC-3643 standard.

• Tether launched Hadron, an asset tokenization platform that provides risk control, asset issuance and destruction, KYC and AML compliance guidance, and supports blockchain reporting and capital market management.

• The Verite framework launched by Circle is an open source identity verification solution that aims to provide an interoperable identity standard for the decentralized finance (DeFi) ecosystem. The framework allows users to prove their identity on the chain while maintaining control over their personal data. It is expected to achieve dynamic binding of on-chain identity with real-world asset (RWA) holdings.

Cross-chain interoperability

Blockchain interoperability refers to the ability to exchange information and value between different blockchain networks. Achieving cross-chain interoperability is essential to promoting the coordinated development of the blockchain ecosystem. Currently, cross-chain communication protocols are emerging, aiming to securely connect different blockchain networks and alleviate the challenges existing in the decentralized blockchain landscape. For example:

• Wormhole launched the NTT framework, which provides an open and flexible cross-chain solution that allows native assets to be seamlessly transferred between different blockchains without the traditional wrapped token model. This innovation eliminates the intermediary risk of wrapped tokens and enhances the integration efficiency of multi-chain liquidity.

• Chainlink has released the Cross-Chain Interoperability Protocol (CCIP), a new open source standard designed to establish universal connectivity between hundreds of public and private blockchain networks and enable cross-chain applications. CCIP solves the fragmentation problem in the blockchain field by ensuring that data and assets can be securely transferred between different blockchain networks, and promotes seamless interaction between various tokenized assets.

Public chain infrastructure

Through smart contracts, the RWA public chain can automatically perform compliance checks, transaction settlements, and profit distribution, thereby reducing intermediary costs, improving operational efficiency, and providing a borderless platform for global investors to promote cross-border capital flows. The following is a brief description of two highly-anticipated RWA-exclusive public chains.

Plume Network

Plume is the first full-stack Layer 1 public chain built specifically for real-world asset finance (RWAfi), designed to enable rapid tokenization and global distribution of real-world assets. Its composable EVM-compatible environment supports the access and management of various real-world assets.

• End-to-end tokenization engine: Simplifies the asset on-chain process through automated compliance checks, KYC/AML integration, and compliance templates.

• Interoperability Hub: Its SkyLink cross-chain interoperability solution connects 16+ public chains (such as Solana, Movement). This will enable users to enjoy institutional-level RWA benefits on multiple chains without permission, promoting the development of the cross-chain RWA ecosystem.

• Ecosystem expansion: Plume has launched 180+ protocols, covering real estate tokenization, private credit, commodities and other fields. The strategic cooperation with rwa.xyz ensures the comprehensive data analysis capabilities of RWA on the chain, providing users with industry-leading tokenized asset data.

Mantra

Mantra aims to provide a permissionless, high-performance and scalable Web3 development environment tailored for compliant RWA applications:

• Compliance: Mantra is the first platform to obtain a DeFi VASP license issued by VARA, allowing it to legally operate virtual asset exchanges, brokerage businesses, asset management and investment services in Dubai, further consolidating the legitimacy of DeFi under the compliance framework.

• Real World Impact: Partnered with DAMAC Group to tokenize $1 billion worth of Dubai real estate, increasing liquidity for high-value properties.

• Developer-friendly: SDK and API are provided to achieve seamless integration of identity authentication, asset custody and cross-chain settlement.

2024 RWA Technology Stack Review

In summary, RWA's tokenization technology stack in 2024 achieves "three-layer decoupling", namely the separation and coordinated development of the asset layer, protocol layer, and application layer.

• Asset Layer

  ERC-3643 standard: widely used to achieve compliant equity tokenization. This standard integrates identity management and transfer restrictions directly into the token smart contract, enabling issuers to perform investor qualification and KYC/AML checks on the chain to ensure compliance of token transactions.

• Protocol Layer

  Chainlink’s oracle network has made significant progress in coverage of RWA price data feeds.

  The Cross-Chain Interoperability Protocol (CCIP) supports seamless RWA cross-chain management, solves the problem of inter-chain fragmentation, and improves liquidity.

• Application Layer

  Lending: Maple Finance pioneered unsecured institutional lending, and later opened it up to retail users through Syrup.fi (launched in June 2024). Defactor has also become a key player, providing on-chain lending solutions for RWAs and retail users.

  SME Financing: Centrifuge tokenizes real-world accounts receivable and invoices, unlocking blockchain-based liquidity to help SMEs obtain financing.

  AMM liquidity provision: IX Swap improves automated market making (AMM) technology to promote the liquidity of tokenized assets.

  Secondary market transactions: Polytrade promotes the development of the RWA secondary market and enables efficient trading of tokenized assets.

This decoupled architecture enables each layer to evolve independently while maintaining seamless integration, accelerating RWA’s journey from niche experiment to scalable, institutional-grade solution.

2.3 Regulatory Game

In 2024, RWA has made significant progress globally, but the large-scale implementation of RWA is inseparable from clear regulatory guidance and policy environment. Governments and international regulators are actively exploring how to promote the development of this emerging field while ensuring financial stability and protecting the rights and interests of investors.

Divergence and synergy of global regulatory trends

• US SEC: The SEC clarified the regulatory framework for security tokens and tokenized assets in 2024, emphasizing that such assets must comply with existing securities laws. This move provides clearer guidance for RWA's compliance operations. In the face of SEC regulation of digital assets, some RWA project parties (such as RWA Inc.) will cooperate with compliance consulting companies to analyze the securities nature of their RWA tokens and take corresponding compliance measures based on the analysis results.

• EU MiCA: Based on MiCA, the EU has further supplemented the regulatory provisions for RWA. MiCA divides stablecoins into asset-referenced tokens (ARTs) and electronic money tokens (EMTs), and sets clear requirements for their issuance and operation. Specifically, MiCA stipulates:

• Asset-referenced tokens (ARTs): refer to specific references to crypto assets that are designed to maintain a stable value with the value of one or more fiat currencies, one or more commodities, or one or more crypto assets as reference. MiCA imposes higher capital requirements and stricter operational requirements on issuers of ARTs to ensure that they have sufficient asset reserves to support the value of the tokens.

• Electronic Money Token (EMT): Refers to a specific reference to a crypto asset that is designed to maintain a stable value with the value of a legal currency as a reference. Issuers of EMT must obtain a license from the Electronic Money Agency and comply with relevant regulatory requirements.

• Regulatory Sandbox in Asia:

• Japan: The revised Payment Services Act clarifies the regulatory positioning of stablecoins as “electronic payment tools”

• Hong Kong and Singapore: By issuing regulatory guidelines and sandbox programs, they provide a clear compliance path for innovative products such as RWAs.

The balance between regulation and innovation

• Dynamic supervision and sandbox mechanism: Many countries have adopted the "regulatory sandbox" model, allowing companies to test new technologies and business models within a limited scope while collecting data to adjust policies. For example, the sandbox program launched by the Hong Kong Monetary Authority provides a test platform for digital asset products such as stablecoins, which can ensure compliance without hindering innovation.

• Cross-border regulatory coordination: With the globalization of RWA and other digital asset markets, regulators in various countries are trying to promote unified regulatory standards under the framework of international organizations (such as FATF and G20), which will help alleviate cross-border regulatory conflicts and information asymmetry problems.

III Market paradox: structural contradictions under prosperity

3.1 Liquidity Stratification

The original intention of RWA tokenization is to improve the liquidity of assets through blockchain technology, so that assets can be traded in the market more quickly and transparently. However, in actual operation, there is a significant stratification in liquidity between different types of assets:

• Differences in asset nature and market size:

• Differences in the intrinsic properties of assets. For example, tokenized U.S. Treasury bonds have national credit endorsement, a mature trading market, and high-standard credit ratings. Their trading activity, trading volume, and price discovery mechanisms are relatively complete, so they have high liquidity. However, assets such as real estate and artworks often have high holding costs and long exit cycles due to their complex valuations, small investor demand, and limited trading methods, resulting in insufficient liquidity.

• Market size and participant structure. Highly liquid assets usually attract a large number of institutional and retail investors, and with sufficient market depth, buyers and sellers can be matched quickly at any time. Low-liquidity assets, on the other hand, may form information islands, with fewer investors and sparse buy and sell orders, resulting in low trading volume, large price fluctuations, and difficulty in executing large transactions without significant slippage.

• Market Participants’ Behavior and Expectation Management:

• Prefer highly liquid assets. Investors generally tend to choose assets that are easy to cash out and have low transaction costs, which is particularly evident during periods of high market heat. The trading activity of highly liquid assets will further attract more participants, while low-liquidity assets may be marginalized, forming a market structure of "survival of the fittest".

• Liquidity premium and price volatility. Assets with better liquidity often enjoy a certain premium, while low-liquidity assets may suffer a large discount when they need to be liquidated urgently due to the lack of sufficient counterparties, thereby exacerbating price volatility and market risks.

To solve this problem, many RWA project parties have taken the following measures:

• Introducing a market maker mechanism : Encourage market makers to provide liquidity for low-liquidity assets, narrow the bid-ask spread and increase trading activity by providing buy and sell quotes.

• Integration of DeFi protocols: Combining RWA with DeFi protocols, such as using RWA as collateral to participate in lending, or incorporating RWA into DEX trading pairs. Through DeFi protocols, the liquidity of RWA can be improved and more profit opportunities can be provided to investors.

• Incentivize users to participate in transactions : Through airdrops, trading competitions, etc., encourage users to participate in transactions of low-liquidity assets.

3.2 Return-Risk Mismatch Crisis

Although RWA brings diversified income opportunities to investors, behind the attractive income, there is often a mismatch between income and risk:

• Inadequate risk disclosure and transparency

  Traditional financial markets require strict information disclosure and regular risk assessment reports, but in the process of RWA tokenization, some platforms have not yet established unified and transparent risk assessment and information disclosure standards. The lack of sufficient risk warnings makes it difficult for investors to understand the credit status of assets, collateral quality and market volatility in a timely manner.

• The disconnect between asset endorsement and actual risk-taking

  In many tokenization projects, in order to achieve digital management of assets, SPVs (special purpose vehicles), trust funds or third-party custodians are usually set up to take over the assets. However, if there are defects in the design of these structures, in the event of bankruptcy or default, the tokens held by investors may not truly correspond to the actual assets, resulting in an increase in the mismatch of returns and risks. High-yield products often come at the cost of higher default probabilities and credit risks, and some products in the RWA market may cause investors to underestimate the potential credit risks due to opaque publicity or ratings, and then suffer huge losses when defaults occur.

• Fluctuations in market sentiment and risk premiums

  Traditional financial markets usually have a variety of risk mitigation tools (such as credit default swaps, guarantee mechanisms, etc.) to balance risk and return, but in many RWA tokenized products, such tools have not been fully developed and applied, making the mismatch between return and risk more obvious. In a decentralized trading environment, token prices are more affected by short-term market sentiment and liquidity fluctuations. When market sentiment is optimistic, high-yield assets may be over-sought after, with prices far higher than their fundamental support; once the market turns cold or a sudden risk event occurs, prices fall rapidly, causing investors to enter at peak times and exit at trough times, further increasing risk mismatch.

3.3 Legal paradox of asset control rights

In the process of RWA tokenization, the control of assets has formed an inherent paradox between the legal system and the technical framework. This paradox is mainly reflected in the three aspects of the dilemma of title confirmation, the failure of bankruptcy isolation and cross-border judicial conflicts, which makes token holders face the dilemma of "triple rights suspension".

• Dilemma of title confirmation: Blockchain technology provides a decentralized ledger that can ensure the uniqueness and transferability of tokens through encryption technology. However, the ownership of assets in the real world relies on the traditional legal title confirmation system, such as real estate registration, company equity structure, custody agreement, etc. Therefore, the ownership of RWA may be split between on-chain registration and off-chain title confirmation.

• Smart Contract vs. Real Law: Although the holder of a token has ownership certificate on the chain, this right may not be able to resist third-party claims without corresponding legal confirmation. For example, in a real estate tokenization project, even if the token is held, if the formal real estate registration is not completed, the token holder may not be regarded as the real asset owner under current laws.

• Automatic execution of smart contracts vs. judicial intervention: In judicial proceedings, the court may order the freezing or redistribution of assets, but the automated execution logic of smart contracts may not be able to effectively cooperate with legal orders, leading to conflicts between the legal system and the technical framework. This means that even if the on-chain transaction has been completed, the court may still declare the transaction invalid or revoked.

• Failure of bankruptcy remoteness: Tokenized assets usually need to be managed by an entity (such as an SPV company, trust fund or custodian institution). Once the entity goes bankrupt, token holders may face:

• Unclear ownership of assets: In the traditional financial system, securities, trust assets, etc. are usually protected by bankruptcy isolation mechanisms. Even if the management party goes bankrupt, the holder's assets will not be used to repay debts. However, in the practice of tokenized RWA, if the legal structure of the asset custodian is unclear, token holders may face the risk of their assets being seized by the court or used to repay debts.

• Token rights may be regarded as unsecured claims: If regulators or courts determine that tokens are only "mappings" of assets rather than direct ownership certificates, token holders may not enjoy priority repayment rights in bankruptcy liquidation and can only queue up for repayment as ordinary creditors. This will seriously weaken the credit basis of RWA assets as financial instruments.

• Cross-border judicial conflicts: RWA tokenization usually involves multiple jurisdictions, such as the location of the assets, the location of the token issuance, the location of the investors, etc. Conflicts between laws of various countries may cause the rights of token holders to be in an uncertain state

• Different legal systems have different views on asset ownership: The laws of some countries consider digital assets to be legal property and protected by property law, while in other countries, they may only be contractual rights or bill rights, which are subject to different legal frameworks. Therefore, investors may face the situation that their tokenized assets cannot obtain legal protection in these countries due to different legal interpretations.

• Cross-border law enforcement issues: Assuming that an investor holds a tokenized gold issued on a blockchain, but the gold is held in a bank vault in another country, if the two countries have different interpretations of gold ownership, the investor may not be able to effectively enforce his ownership claim. In addition, there are technical barriers to the execution of court freezing and seizure orders on the blockchain.

IV Future Prediction: Three Major Trends of RWA in 2025

4.1 Asset Class Revolution

1. The trend of non-standard assets on the blockchain:

   As the RWA market continues to expand, private credit and U.S. Treasuries are expected to continue to dominate due to their excellent liquidity and credit ratings. However, non-standard assets, especially real estate in developed regions or areas of high economic growth, will see significant on-chain progress in 2025.

    According to Bitwise's forecast , the RWA market will reach $50 billion by the end of 2025. Among them, Security Token Market predicts that tokenized real estate will reach $1.4 trillion, and Roland Berger predicts that real estate will account for nearly one-third of the market share. Roland Berger's forecast shows that real estate is expected to become the largest type of tokenized assets in 2030, accounting for nearly one-third of the market. This is mainly due to the maturity of blockchain technology and the increase in demand for RWA, which traditionally has low liquidity and is expected to achieve more efficient trading and management.  (Source: Roland Berger )

2. RWAFi large-scale integration innovation: Before the real world officially entered the Web3 era, the development of RWA was mainly due to the thirst for traditional financial liquidity. However, with the on-chain of RWA, this process is not only the digitization of assets, but also the deep integration with blockchain finance such as DeFi. This integration has spawned a powerful "RWA+any 'Fi'" model, promoting the diversity and depth of financial innovation. The combination of real estate tokenization and DeFi is an important direction of RWAFi integration innovation. By putting real estate assets on the chain and combining them with DeFi protocols, the following innovative applications can be achieved:

• Mortgage: Use tokenized real estate as collateral to obtain a loan from a DeFi lending platform (for example, use a tokenized apartment as collateral in exchange for a stablecoin loan).

• Yield Farming: Token holders can deposit RWA tokens into DeFi protocols to earn interest income (such as loan repayment income) or protocol rewards (such as governance tokens). Unlike passive holding, yield farming can actively optimize asset returns.

• Liquidity Mining: Users can provide liquidity for RWA token trading pairs and earn transaction fees and liquidity incentives on decentralized exchanges (DEX). The income is proportional to the liquidity invested.

Case: RealtyX, Plume Network and Ecosystem Partners

RealtyX (real estate tokenization platform) and Plume Network (L1 public chain built specifically for RWA) are promoting the implementation of the RWAfi innovation framework:

• Tokenization: RealtyX tokenizes real estate (such as Dubai residential properties) through the Plume blockchain, ensuring regulatory compliance and cross-chain interoperability.

• Collateralized Loans: Token holders can use RealtyX tokens as collateral to obtain loans on lending platforms integrated with Plume (such as Defactor, Mystic Finance).

• Yield Farming: Combining RealtyX’s real estate tokens with Pendle’s yield tokenization protocol, users can create tradable tokens of future rental income and optimize their return on investment.

• Liquidity Mining: RealtyX tokens can form a liquidity pool with stablecoins for trading on DEX (such as Rooster Protocol), and liquidity providers can receive incentives in the native tokens of RealtyX and Plume.

4.2 Technology Paradigm Shift

• Adoption of Zero-Knowledge Proof Technology

  Zero-knowledge proof (ZKP) technology has shown great potential in many areas of Web3. In the RWA field, the application of ZKP can realize asset verification and transactions while ensuring data privacy. This is especially important for on-chain transactions involving assets with sensitive information (such as real estate, private credit, etc.), which can enhance the security and credibility of transactions.

• Modular blockchain adoption

  Modular blockchain architecture has shown its advantages in improving network performance and scalability in other areas of Web3. In the field of RWA, the adoption of modular blockchain can achieve flexible combination of different functional modules to meet the needs of diversified assets on the chain. This will promote the standardization and interoperability of RWA and reduce the technical threshold and cost of on-chain. For example, Plume Network has attracted more than 180 RWA-related protocols, more than 300,000 user addresses, and generated hundreds of millions of transactions on the test network.

4.3 Reconstruction of the regulatory framework

• Shift in US regulatory policy

  Given the Trump administration’s friendly attitude toward cryptocurrencies and the accelerated entry of U.S. institutions into the RWA field, it is foreseeable that the United States will show a more open attitude in the regulation of crypto assets. It is expected that policies and regulations will be introduced to support the on-chain of RWA, encourage financial innovation, and ensure the stability and security of the market. This will provide a clearer legal framework for the development of RWA, reduce compliance risks, and attract more institutions and investors to participate.

• Cross-border unified supervision

  Although this is not a major trend in 2025, with the continued outbreak of RWA, especially the predicted outbreak of non-standard assets, there may be a lot of cross-border lawsuits involving RWA, especially related to non-standard assets, this year. This will prompt regulators in various countries to begin to consider the formulation of a unified international regulatory framework to address legal and compliance issues in cross-border transactions.

Conclusion: RWA’s growing pains towards institutional maturity

In 2024, RWA tokenization will move from concept to reality, and will gradually enter the scalable application stage driven by accelerated institutional investment (such as BlackRock BUIDL), regulatory breakthroughs, and infrastructure upgrades (such as Plume Network's RWA-exclusive L1). However, with the growth of tokenized assets such as government bonds, real estate, and private credit, the industry still needs to face a series of structural challenges.

Core Challenges

1. Centralization Dilemma: The Conflict between Compliance and Decentralization

• Many RWA protocols rely on the "permissioned DeFi" model (such as custodians, SPV) to meet compliance requirements, which conflicts with the decentralized concept of blockchain.

• The legal ownership of assets is still subject to traditional legal frameworks, limiting the autonomy of smart contracts in dispute resolution.

2. The Decentralization Gap: Entry Barriers and Regulatory Obstacles

• There is a conflict between lowering the investment threshold and barriers such as KYC/AML compliance, opaque information disclosure, and high technical barriers.

• While DAO governance has potential, it still faces challenges from low participation and regulatory uncertainty.

3. Market fragmentation: liquidity is unevenly distributed

• Liquidity is concentrated in blue-chip RWA assets (such as US Treasuries), marginalizing niche assets.

• Cross-border legal uncertainty threatens enforceable ownership claims of tokenized assets, increasing investment risk.

Solution: Collaboration is better than compromise

To achieve the global development of RWA, all parties in the industry need to focus on promoting the following directions:

1. Seamless interoperability

   Through Plume Network's RWA-exclusive L1 and RealtyX's DeFi integration, we can connect the traditional financial and blockchain worlds and reduce resistance to asset flow.

2. Compliance Embedding

   Embed KYC/AML mechanisms (such as zero-knowledge proof authentication) at the protocol level to ensure compliance while protecting user privacy, proving that compliance should not be an obstacle to innovation.

3. Global Governance Alliance

   Cooperate with institutions such as FATF and BIS to promote the unification of cross-border regulatory standards and ensure that the rights and interests of tokenized assets can still be legally protected in cases of bankruptcy, judicial conflicts, etc.

4. Education promotes popularization

   Lower the barrier to entry for average users through friendlier user interfaces (such as RealtyX’s retail-friendly Dapp), and increase market transparency with Chainlink’s asset-level oracles.

Charting a blueprint for responsible scale-up

The rise of RWA is not about replicating traditional finance, but about rebuilding trust:

• For institutions: Achieve 24/7 liquidity and allow once illiquid assets to enter global markets.

• For individual investors: Expand market access, such as Dubai real estate, Asian private credit, etc.

• For developers: Projects like RealtyX are proving that decentralization and real-world financial frameworks can coexist compatibly.

The infrastructure has been put in place, and the industry trend is irreversible. Now, the key lies in how to execute efficiently - the industry needs to adopt a rigorous attitude, an inclusive perspective, and focus on the future to promote RWA to truly institutional maturity.