Onchain RWAs gain momentum as Bitcoin faces price challenges

Real-world assets (RWAs) are increasingly attracting investor interest as Bitcoin (CRYPTO:BTC) struggles with price stagnation amid global market uncertainties. 

RWA tokenisation involves the creation of digital versions of tangible assets such as real estate and fine art, allowing for greater accessibility and liquidity for investors. 

As Bitcoin fell below the $100,000 mark on February 4, following concerns over a global trade war and new tariffs imposed by the US and China, RWAs are seen as a stable alternative. 

Alexander Loktev, chief revenue officer at P2P.org, suggested that Bitcoin’s stagnation may lead to a surge in RWA investments, with the potential for total value locked (TVL) to reach $50 billion in 2025. 

Loktev noted that major financial institutions, such as BlackRock and JPMorgan, are increasingly exploring tokenisation, signaling that RWAs are becoming a bridge between traditional finance (TradFi) and decentralised finance (DeFi). 

The RWA market has recently reached an all-time high of $17.1 billion across 82,000 asset holders, reflecting growing institutional adoption. 

Marcin Kazmierczak, co-founder of RedStone, emphasised that RWAs could tap into a significant portion of the $450 trillion global asset market.

Even a small shift—1-2%—toward blockchain-based RWAs could trigger substantial growth in the coming years. 

Kazmierczak pointed out that blockchain offers more efficient, borderless, and composable systems compared to traditional financial infrastructure, driving demand for RWAs. 

With increasing crypto volatility, RWAs are expected to become a key narrative for institutional investment in 2025. 

Bhaji Illuminati, CMO at Centrifuge, noted that the instability in crypto markets serves as a reminder of the value of stable, yield-generating assets like RWAs, which provide a hedge against market swings. 

Several industry experts predict that the RWA market could grow up to $30 trillion by 2030 as blockchain adoption in traditional finance accelerates.

At the time of reporting, the Bitcoin (BTC) price was $97,013.35.