Overview
2025 was a breakthrough year for the tokenization of Real World Assets (RWA), marking the transition of the sector from pilot phase to early institutional scale. Issuers significantly expanded the types of tokenized products, including money market funds, private credit, commodities, and emerging stock tokenization models; meanwhile, the total locked value of on-chain RWAs continued to rise.
Entering 2026, market opportunities are no longer just a continuation of 2025. The core of the next phase lies in achieving accelerated development through market structure: clearer regulatory frameworks, broader institutional participation, continuously increasing investor demand, and expansion into more asset classes.
A key change is that participants in Web3 are no longer limited to crypto-native users. Users' asset allocation thinking is becoming more diversified: they seek diversified asset exposure, simpler access paths, and faster settlement speeds—often not viewing 'blockchain' itself as an investment target. Looking ahead, Web3 is gradually evolving from a concept of single asset classes to a distribution technology.
The macro environment drives the market
To understand the factors that may drive RWA development in 2026, one must first review the driving factors behind changes in risk appetite in 2025. Digital assets (including crypto assets and RWA) do not exist in isolation; they are increasingly influenced by the same macro variables affecting traditional markets—such as interest rates, inflation trends, policy uncertainty, and the global liquidity environment.
US policies and macroeconomic controls will still be key determinants in 2026, as they anchor global liquidity and set the tone for risk-free rates. The Federal Reserve's long-term inflation target is 2%, which is usually measured by the Personal Consumption Expenditures price index (PCE), a broader measure than the Consumer Price Index (CPI), also more aligned with actual household spending patterns. Nevertheless, CPI remains the inflation indicator most widely followed by the market and the public, serving as a 'headline' reference for price pressures.
As of December 2025, the US CPI inflation year-on-year is 2.7%, with an unemployment rate of about 4.4%. This combination keeps the market continuously discussing the timing and rhythm of further interest rate cuts. In December 2025, the Federal Reserve conducted its third interest rate cut of the year—its sixth cut since September 2024. Reuters simultaneously noted that the Fed has cut rates by a total of 75 basis points in 2025, and as 2026 begins, policymakers have indicated they prefer to wait for more data before taking further action.
What does this mean for investors
As interest rates decline, it will have substantial impacts on investors' behavior in both traditional and on-chain markets. If monetary policy easing accelerates, especially in more aggressive scenarios (for instance, Fed Governor Stephen Miran believes that a cut of 'more than 100 basis points' is reasonable), front-end yields are likely to compress significantly. In this scenario, the yield on short-term US Treasury bills may drop to about 2.5%-3.0% by year-end (depending on the speed and magnitude of rate cuts), which, compared to broader investment opportunities, will noticeably reduce attractiveness for many investors.
When cash-like yields decline, some investors typically rebalance their portfolios, reducing concentration in Treasury bills and USD money market funds, and instead choosing assets expected to yield higher returns or have diversified yield characteristics. In practice, this often manifests as an increased preference for gold (as an inflation hedge) and also includes selective asset allocation to credit assets (including private credit) and physical assets like real estate, depending on risk appetite and macro environment.
The same dynamic adjustment mechanism also applies to digital assets. When risk-free rates decline and liquidity conditions improve, Bitcoin (BTC) may benefit from a reflow of funds, including through compliant channels such as Bitcoin spot ETFs. In an environment of rising macro uncertainty, the narrative of 'Bitcoin as digital gold/hedge tool' tends to re-emerge (though not always in the short term). Historical experience shows that when Bitcoin strengthens due to improved risk sentiment or capital inflows, high-beta tokens typically follow suit, although performance varies widely among different altcoins.
Importantly, on-chain investors are no longer limited to cryptocurrency allocations. With the development of physical asset tokenization, market participants are increasingly able to allocate traditional assets in an on-chain form—including interest rates, credit, commodities, and stocks. This convergence presents the same core question for different types of investors in asset allocation: where will the next sustainable source of yield and diversity be when money market fund and short-term treasury yield fall to lower levels? Under real institutional and operational constraints, which assets possess higher availability and holdability?
This raises a key question: which RWA asset classes are most likely to achieve breakthrough growth in 2026?
Asset classes to watch in 2026
Tokenization of money market funds and private credit will continue to grow in 2026, primarily because issuers and allocators have gradually understood how these products can fit into existing compliance frameworks, custody, and operational processes.
At the same time, practical experience in 2025 shows that when tokenization projects successfully land and are validated in one or two relatively robust asset types, issuers typically become more willing to expand into adjacent products within the same asset class. From a distribution perspective, the market is seeing increasing active demand, no longer limited to cash management or credit allocation, but extending to commodities, stocks (including non-US markets), and differentiated strategies. This is crucial, as it will determine which structures will be prioritized for adoption, which partners will be mobilized, and which asset classes can achieve scalable growth first.
The market structure itself is also maturing. Current tokenization platforms include both single-asset specialized and multi-asset distribution platforms, and diversified pathways are expanding the scope of on-chain assets. For 2026, the core issue is no longer 'Can assets be tokenized?' but rather how tokenization can genuinely expand the range of asset availability under clear rights, legal frameworks, scalable operations, and effective liquidity/transfer mechanisms.
The following asset classes are worth focusing on because they simultaneously possess: (i) clear investor demand, (ii) continuously growing multi-asset allocation demand, and (iii) continuously improving distribution channels, making previously hard-to-get assets easier to hold.
Precious metals: More than just gold
Historically, tokenized commodities have been dominated by gold, primarily because gold has a mature custody and collateral system and has long been regarded as a globally recognized store of value. However, the next phase of growth may extend to a broader category of precious metals.
In December 2025, prices for silver, platinum, and palladium all reached historic highs due to rising market uncertainty and investors seeking asset diversification. Just as investors are no longer limited to gold in precious metal allocations, tokenization issuers may also actively expand into these metals to meet investors' diversification needs and the issuers' growing confidence.
However, the current market structure remains unbalanced. Gold already has mature leading products and distribution channels, such as Tether Gold (XAU₮) and PAX Gold (PAXG), both clearly anchored to the physical gold custody and redemption framework. In contrast, other precious metal tokenization products have yet to establish the same level of brand influence and distribution depth. If new projects can combine credible collateral standards with sustained liquidity, precious metal tokenization is expected to achieve greater expansion in 2026.
Additionally, early signs indicate that on-chain participants are simultaneously trading assets linked to precious metals and stock-type RWA. In 2025, the three most traded RWA stock/ETF tokens on the Bitget platform were linked to Tesla (TSLAon), iShares Gold Trust (IAUon), and iShares Silver Trust (SLVon).
Real Estate
Real estate is one of the largest tokenization opportunities in the long run, due to its massive size and the structural issues such as high investor access barriers and significant transaction friction, while tokenization has the potential to alleviate these issues. Deloitte predicts that by 2035, the size of tokenized real estate could reach $4 trillion, though this is still small compared to the total global real estate value—Savills estimates the total global real estate value to be approximately $393 trillion as of early 2025.
Looking ahead to 2026, if interest rate levels decline, the affordability of mortgages and the overall financing environment is expected to marginally improve, which may support the activity level and asset prices of real estate transactions in most markets. In this context, the appeal of tokenized real estate lies not in replacing property ownership but in serving as a new distribution and access channel, particularly suitable for investors wishing to participate with smaller investment amounts, cross-border involvement, or obtain faster transfer mechanisms.
Public and private equity
Tokenized US stocks are gradually emerging, and although the current market size is still small, discussions at the institutional level increasingly point to tokenized stocks potentially becoming an important supplementary channel for distribution and liquidity. Bitget's report indicates that 95% of tokenized stock traders are also holders of crypto assets.
The key development in 2025 is that the market quickly produced various different models of stock tokenization, which need to be clearly distinguished as they each optimize different goals (such as access and liquidity vs shareholder rights and corporate governance): first are price/economic exposure tokens (such as Backed's xStocks, Ondo Global Markets), used to track the economic performance of listed stocks rather than granting shareholder rights; and direct issuance structures (such as Superstate's direct issuance project), which allow investors to enter the issuance/registration process more directly; and the compliant on-chain stock market structure promoted by Securitize.
Currently, stock tokenization is still mainly focused on publicly listed companies' equities, which is why private equity is seen as the 'next focal point' in 2026. Many investors wish to access high-quality private companies earlier, and tokenization can broadly reach this through early employee shares, VC/PE funds, or other structured means. The core value for holders and funds lies in liquidity—built on the verified legal and operational foundations of public stock tokenization, tokenization is expected to gradually support secondary transfers and the establishment of on-chain liquidity pathways.
Over the past two years, artificial intelligence (AI) and the technology sector have been significant drivers of market performance, and the landscape in 2026 still favors ongoing innovation and mergers. The issue is that most value creation occurs in the pre-IPO stage, making it difficult for ordinary investors to participate. Meta's acquisition of Manus for over $2 billion clearly demonstrates how opportunities in the private market are quickly repriced by strategic buyers entering the space, thus disappearing from the realm of public participation.
For this reason, tokenized private equity is increasingly seen as the 'next frontier' for RWA—its significance lies not only in earlier access but also in expanding the potential investor base through compliant distribution channels.
Hedge Fund Strategies
Currently, RWA products in the market are still mainly focused on cash management and credit assets, which leaves risk-tolerant investors lacking high-yield options. Therefore, tokenized hedge fund strategies are worth watching in 2026. Although the liquidity of these strategies may be lower than that of 'core' RWA categories, they are more appealing to investors with a higher risk tolerance, with some strategies targeting a return range of approximately 15%-30%.
In 2025, the AIMA and PWC report indicated that about one-third of hedge funds are actively promoting or planning to explore tokenization, with the strongest interest from Asia and the Middle East. The report also showed that 52% of surveyed hedge funds expressed varying degrees of interest in tokenized fund structures, primarily motivated by expanding investor access and improving operational efficiency.
Taking DigiFT as an example, the platform is currently distributing tokenized hedge fund strategies focused on volatility opportunities in traditional, alternative, and crypto assets, attracting not only investors but also other hedge funds researching the feasibility of tokenization.
A common concern is: if liquidity is limited, will investors still buy tokenized hedge funds? The key is not that tokenization automatically creates 'liquidity', but that it can gradually support secondary market liquidity—through over-the-counter transfers facilitated by market makers, or by integrating with DeFi once infrastructure and compliance mature. Meanwhile, liquidity is not the only focus for investors; in an environment where uncertainty persists, investors also seek differentiated, high-yield strategies that can benefit from volatility.
Non-US stocks and regional inclusiveness
From a global perspective, the Japanese and Chinese stock markets have appeared relatively 'quiet' for many years, but their actual performance is strong and is expected to expand further in 2026. China continues to innovate in technology and AI, while the Japanese stock market is regaining attention from global investors, with the USD/JPY exchange rate also having a significant impact on cross-border allocation and return expectations. Even Warren Buffett's Berkshire Hathaway has publicly stated its long-term holdings in Japanese stocks. However, the current biggest issue is accessibility.
In China, foreign participation in A-shares has long been low, usually accounting for only about 3-4% of total market capitalization, reflecting structural constraints such as capital controls, the QFII quota system, and limited foreign access channels. Although access has improved in recent years, foreign ownership remains limited, and the domestic stock market is still viewed by many global investors as difficult to enter.
The situation in Japan is different. Foreign participation in the Japanese stock market is quite high, though it may not have 'reached its limit', typically holding about 30% of market capitalization, although there are significant differences by sector. In 2025, foreign inflows were particularly notable. Reuters reported that in one week in October 2025, foreign net purchases of Japanese stocks amounted to 752.6 billion yen (about $5 billion), pushing the Nikkei index close to historic highs. The Financial Times also reported that in April 2025, foreign purchases of Japanese stocks and bonds in a single month reached 8.2 trillion yen, setting a new high since at least 2005.
This indicates that the accessibility of the Japanese stock market is relatively open and demand is still growing. If the entry path is further simplified, participation still has room to increase. A potential solution is to tokenize Chinese and Japanese stocks.
As the legal structure matures, foreign investors are likely to access a broader range of non-US stocks in 2026, no longer limited to the US stock market.
The key factors driving RWA adoption in 2026
Although 2025 may be the most significant year for tokenization so far, the market still remains in its early stages. If 2025 is a turning point from the experimental phase to institutional-level scaling momentum, then 2026 could become a year of truly deep integration of tokenization into the on-chain ecosystem.
The primary factor driving RWA adoption is: deep integration with the on-chain ecosystem. The main barriers faced by DeFi protocols and RWA issuers are legal and compliance alignment. Some DeFi protocols do not yet have the structural conditions to integrate RWA, while the issuance structures of certain RWAs also limit their potential for integration. DeFi protocols need viable solutions to hold security tokens, such as through custodial institutions or creating entities that can hold RWAs.
From the issuer's perspective, if DeFi protocols cannot directly hold security tokens, issuers still need to create on-chain composability by building solutions—viable paths include constructing permissionless access layers under compliance or collaborating with vault structures capable of asset custody, where the latter holds the underlying security tokens and issues certificate-type tokens representing rights to the underlying assets.
This is precisely why legislation around market structure is crucial. The United States (Digital Asset Market Clarity Act) (CLARITY Act) has sparked widespread discussion, with its core goal being to establish clearer regulatory boundaries for the US crypto market and clarify the responsibilities of various regulatory bodies and market participants. If market structure can be clarified, trading platforms and protocols will find it easier to meet compliance expectations at the operational level, thereby paving the way for the integration process of physical asset tokenization. A noteworthy current situation is that most DeFi protocols are leaning more towards technology service providers rather than financial intermediaries, which underscores the increasing importance of legal compliance alignment as the level of integration deepens in the field of physical asset tokenization.
In the issuance and distribution process of security tokens, integrating through regulated channels is a key consideration—especially in first-tier jurisdictions. This necessity arises not only from macro-level uncertainties but also directly relates to regulatory risks. In practice, if a trading platform is not licensed accordingly, it will always face the risk of being restricted or shut down by regulatory authorities, leading to complex issues for investors such as limited liquidity and disrupted exit mechanisms. Taking Singapore as an example, the Monetary Authority of Singapore (MAS) has issued guidelines clarifying the regulatory requirements for tokenized capital market products under the Securities and Futures Act framework. Depending on the token attributes and specific activity types, related distribution behaviors may trigger licensing requirements. Although regulation cannot eliminate risks entirely, regulated pathways usually provide market participants with a more robust operational framework than unregulated venues.
Finally, attention should be paid to regulatory arbitrage issues. Traditional regulatory arbitrage refers to exploiting or circumventing regulatory differences between jurisdictions to break through restrictions or gain an asymmetric competitive advantage. In practice, market access is the primary constraint, and the most direct way to break through access restrictions is often to seek out jurisdictions that allow operations—such as opening a brokerage account in Hong Kong to access assets difficult to configure directly in the domestic market. While tokenization can broaden asset access channels, in most jurisdictions, such assets are still defined as securities, meaning compliance boundaries still apply. To completely break through these restrictions, the only path is to convert assets into a permissionless form and integrate them into the DeFi system—this indeed returns to the core issue: the on-chain ecosystem integration of RWA will be the most critical factor driving RWA adoption in 2026.
Summary
Overall, the key in 2026 is not whether RWA can be tokenized but whether they can be distributed and used at scale—in a clear rights, executable legal framework, and operational processes that support custody, settlement, and transfer.
As cash yields begin to normalize, investment demand may expand from money market and credit tokens to commodities, stocks, real estate, and differentiated strategies, especially in areas where tokenization can reduce access friction and gradually improve secondary transfer capabilities. The next stage of tokenization will be determined by the quality of infrastructure: compliant distribution mechanisms, reliable settlement systems, and liquidity pathways feasible for institutional investors and the on-chain ecosystem.
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Original link
CoinFound: https://app.coinfound.org/zh/research/5
DigiFT Research: https://insights.digift.io/2026-rwa-outlook-macro-liquidity-and-distribution/