Best Real World Asset (RWA) Projects

Best Real World Asset Projects in Crypto

Real-world asset projects now represent a $14 billion segment of the crypto market, fueled by consumer interest in stablecoins, tokenized real estate, and decentralized lending protocols.

As the sector prepares for multitrillion-dollar growth in the next six to ten years, the most impactful platforms are those delivering real-world usability, regulatory alignment, and scalability.

After assessing over 20 platforms, we have identified the top RWA projects, detailed in the table below.

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1. Ethena (ENA)

Ethena is a decentralized platform that creates stablecoins backed by real-world assets, focusing on over-collateralization. Its primary product, USDe, has become one of the top three stablecoins in market capitalization, surpassing competitors like DAI.

In Q4 2024, Ethena introduced USDtb, a stablecoin backed by BlackRock, which reached $65 million in total value locked on its first day. The platform has formed partnerships with Lyra Finance and Pendle to provide leveraged ETH exposure and high-yield opportunities for its users.

Ethena has generated $235 million in fees in 2024, sharing a portion of these earnings with its token holders. By integrating traditional financial assets with blockchain technology, Ethena aims to provide transparent and compliant solutions for both institutional and retail investors.

• Type of RWA: Stablecoins backed by real-world assets (ETH and stETH).
• Market Cap: $3.25 billion (ENA) and $6.01 billion (USDe).
• Products: USDe, USDtb, Delta-Neutral Strategy Vaults, Mantle Liquidity Tools, Yield Optimization Pools.
• Yields: 27.1% APY for sUSDe.

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2. Ondo Finance (ONDO)

Ondo Finance focuses on creating innovative financial products by integrating traditional assets with blockchain technology. Its flagship product, USDY, provides stable returns and is used across more than 70 projects on networks such as Ethereum and Solana.

In 2024, the platform introduced a cross-chain bridging through LayerZero, improving interoperability for its users. It also enabled 24/7 conversions between OUSG and PayPal USD (PYUSD), enhancing liquidity management.

Ondo’s compliance-focused approach, including regulated offerings like USDY and OUSG, has attracted significant institutional attention. By prioritizing transparency and usability, Ondo continues to expand its presence in the growing market for tokenized assets.

• Type of RWA: Tokenized bonds and fixed-income products.
• Market Cap: Approximately $2.60 billion for ONDO.
• Products: USDY Token, OUSG Token, Flux Finance, Ondo Vaults, LayerZero Integration.
• Yields: 4.65% APY for USDY and 4.43% APY for OUSG.

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3. Mantra (OM)

Mantra is a blockchain platform designed to make high-value assets more accessible through tokenization and innovative financial tools. In 2024, the platform launched its mainnet, establishing a robust and secure environment for creating and managing tokenized assets.

It introduced a real-world asset savings vault in collaboration with Ondo, offering users competitive yields backed by regulated products like USDY. Mantra onboarded projects including decentralized lending protocols and tokenized real estate platforms to broaden its ecosystem.

The platform secured $11 million in funding from key investors, enabling the development of new financial products and services. Strategic partnerships have focused on increasing liquidity and adoption for tokenized assets across various markets.

• Type of RWA: Real estate and other long-term assets.
• Market Cap: $3.75 billion for OM token.
• Products: OM Token, MANTRA L1 Chain, RWA Savings Vault, MANTRA Token Studio, MANTRA Lending Platform.
• Yields: Vaults with 13.60% APY for DOT, 6.12% for SOL, and 4.20% for ETH.

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4. Pendle (PENDLE)

Pendle is an RWA project that unlocks the value of future yield streams through tokenization and specialized financial products. It has developed an automated market maker (AMM) tailored to assets subject to time decay, enabling more precise pricing and trading of yield-bearing tokens.

The platform offers various yield tokenization products, such as tokenized future yield (YT) and principal tokens (PT), which allow users to separate and trade different components of yield-bearing assets. Recently, Pendle integrated with Ethena, introducing new liquidity pools.

Pendle also provides tools for yield farming and risk management, catering to diverse financial strategies. The platform has gained adoption among both institutional users and individual investors seeking innovative yield management solutions.

• Type of RWA: Yield tokenization and future yield trading.
• Market Cap: $950 million (PENDLE token).
• Products: Yield Tokens (YT), Principal Tokens (PT), SY Tokens, Pendle AMM, vePENDLE.
• Yields: Fixed yield at 45.59% APY for USD0++ and 25.49% for sUSDe.

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5. Quant (QNT)

Quant concentrates on connecting blockchain networks with traditional systems to support tokenized real-world assets (RWAs). Its Overledger technology links blockchain protocols to financial infrastructure, enabling transactions for assets like real estate, bonds, and commodities.

Quant has collaborated with Oracle through the Oracle Global Startup Ecosystem to integrate blockchain solutions into financial systems and partnered with SIA to optimize blockchain interoperability. These efforts promoted RWA adoption in sectors like finance and supply chains.

The platform also supported central bank digital currency (CBDC) projects, backed by real-world reserves. Quant addresses key challenges in cross-border payments, compliance, and data security to integrate tokenized assets into global systems.

• Type of RWA: Interoperability solutions for tokenized assets (real estate, bonds, commodities).
• Market Cap: Approximately $1.65 billion.
• Products: Overledger Gateway, Overledger Network, CBDC Modules, Cross-Ledger Payments, RWA Tokenization SDK.
• Yields: Providing liquidity on Uniswap V3 for QNT + ETH pool for 28.84% APY.
  

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What are Real World Assets (RWA)?

Real-world assets (RWAs) are traditional financial or physical assets digitized and represented on a blockchain. These include tangible items like real estate, commodities, and fine art, alongside financial instruments such as bonds, stocks, and cash reserves.

RWA projects are the platforms and protocols that facilitate the tokenization and management of these assets on different blockchains. They provide the tools and frameworks to digitize real-world assets, supply liquidity, and ensure compliance with regulatory standards.

Examples include Ondo for tokenized U.S. Treasuries, Centrifuge for corporate bonds, and Maple Finance for institutional loans. In real estate, RealT tokenizes rental properties, RedSwan focuses on commercial buildings, and Harbor handles real estate investment trusts.

Stablecoin platforms include Tether (fiat, gold, silver); Ethena for over-collateralized assets; and MakerDAO for decentralized stablecoins. Chainlink complements these platforms by providing oracle solutions that ensure accurate pricing data both on and off the blockchain.

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Risks and Challenges for RWAs

RWAs might offer a great investment opportunity in tokens representing this sector, but the products themselves have risks and challenges that could slow their adoption and growth.

• Regulatory Uncertainty: Disparate laws across jurisdictions, such as the US SEC's scrutiny of tokenized securities, can stall innovation and create legal conflicts.
• Operational Complexity: Tokenizing assets like real estate or commodities demands precise legal frameworks and coordination between traditional custodians and blockchain providers.
• Liquidity Risks: Low trading volumes in tokenized real estate markets have led to huge price swings, as seen with the RealT platform's early struggles.
• Custodial Concerns: Mishandling of physical assets by custodians or discrepancies in asset representation could erode trust in tokenization platforms.
• Market Adoption: Gaining investor trust is difficult without proven use cases; many traditional players remain skeptical due to the nascent state of RWAs.
• Smart Contract Risks: Weak access controls and vulnerabilities in smart contract code can lead to exploits, such as the 2024 Curio hack that resulted in the unauthorized minting of 1 billion tokens.

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RWA Market Size Forecast

Predictions RWAs vary widely, with Standard Chartered projecting the market could reach $30.1 trillion by 2034. In contrast, analysts like Jamie Coutts of Real Vision suggest a more conservative target of $1.3 trillion by 2030, citing slower adoption and operational challenges.

As of 2024, the United States leads global RWA interest with 14.8% of attention focused on RWAs, driven by protocols such as Ondo Finance and Goldfinch. Indonesia follows with 10.1%, and Türkiye holds 8.0%. India ranks fourth at 6.3%, while the United Kingdom captures 5.6% of the global share.

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What RWA Projects is BlackRock Investing in?

BlackRock, under CEO Larry Fink's leadership, is widely associated with advancing the tokenization of real-world assets. Fink has stated that tokenization represents "the next generation for markets and securities," highlighting the firm's interest in RWAs. So far, BlackRock has invested in:

• USDtb Stablecoin: Partnered with Ethena Labs to back the USDtb stablecoin using BlackRock's USD Institutional Digital Liquidity Fund, ensuring regulatory compliance and liquidity.
• Securitize: Led a $47 million funding round for Securitize in May 2024 to advance the tokenization of real-world assets and digital asset securities.
• BlackRock USD Institutional Digital Liquidity Fund (BUIDL): Launched in March 2024 as a tokenized fund on Ethereum, allowing qualified investors to earn U.S. dollar yields and marking BlackRock's entry into blockchain-based financial products.

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Bottom Line

The rise of RWAs presents an exciting opportunity for investors looking to diversify into digital assets tied to traditional markets.

As more platforms gain traction, it’s important to evaluate their regulatory compliance, scalability, and institutional backing before investing.

Whether RWAs achieve their trillion-dollar projections will hinge on their success in bridging institutional trust with blockchain innovation and we’ll be here to watch it unfold.