IMF Warns $27.5 Billion Tokenized RWA Market Carries Systemic Risks

Real-world asset tokenization brings traditional assets such as US Treasuries, private credit, stocks, and gold onto blockchains to enable fractional ownership, more efficient settlement, and round-the-clock trading. On-chain RWAs reached $32.22 billion by the end of June 2026, nearly triple the $11.8 billion recorded a year earlier. Tokenized US Treasuries accounted for about $15 billion.

The RWA market capitalization first topped $32 billion on May 12, 2026. JPMorgan subsequently applied to the US Securities and Exchange Commission to launch a tokenized money market fund on Ethereum. Axis CEO Chris Kim warned on May 14 that issuers were focusing solely on issuance while neglecting secondary-market depth. A July 3 report showed that only about 10%, or roughly $3 billion, of RWAs had entered DeFi.

Real-world asset tokenization records ownership interests in traditional assets, such as U.S. Treasuries, on a blockchain. As regulation becomes clearer and barriers to investment fall, institutional capital has increasingly shifted toward yield-bearing on-chain products since early 2025. a16z views the trend as an important sign that crypto is moving toward practical financial applications.

The tokenized RWA market has grown by a cumulative 420% since early 2025, with its total market capitalization exceeding $30 billion. A recent a16z report estimates the market at about $34 billion. Tokenized U.S. Treasuries are the main growth engine, with their market capitalization surpassing $15 billion, although the report also found that about 70% of RWA tokens lack active on-chain circulation.