While crypto markets swung wildly in February, wiping billions off token prices in a matter of days, one corner of the industry kept growing almost unnoticed. Real-world assets—U.S. Treasuries, gold, private credit, and funds turned into blockchain tokens—continued to attract capital, driven not by traders chasing momentum, but by institutions looking for yield, efficiency, and round-the-clock settlement.

As Bitcoin and other major cryptocurrencies struggled to regain footing after a sharp correction, tokenized versions of traditional financial assets quietly crossed new milestones. Data from industry trackers shows that the market for tokenized real-world assets, excluding stablecoins, has grown to roughly $20 billion to $30 billion in early 2026, with some segments posting triple-digit growth over the past year. Tokenized U.S. Treasuries and cash-equivalent products alone now account for more than $8 billion of that total, reflecting a surge of interest in on-chain yield products that resemble money-market funds more than speculative crypto trades.

The appeal is straightforward. Unlike most cryptocurrencies, which derive much of their value from market sentiment and network effects, tokenized real-world assets are backed by cash flows from familiar instruments: government bonds, commodities, or loans. They offer predictable yields, transparent reserves, and the ability to move and settle 24 hours a day on public blockchains. In an environment where volatility has returned to the forefront of crypto markets, that combination has proven attractive to asset managers and corporate treasuries alike.

One of the most visible signs of this shift has been the growth of BlackRock’s tokenized fund, known as BUIDL, which invests in short-term U.S. government securities and uses blockchain rails for issuance and settlement. The fund’s assets have climbed past the $2 billion mark, making it one of the largest tokenized investment vehicles in the market. Other issuers, including Ondo Finance and Securitize, have also expanded their offerings, bringing tokenized versions of Treasuries, yield-bearing notes, and private credit products to both institutional and crypto-native investors.

These products are part of a broader push to move pieces of traditional finance onto blockchains, a process often described as tokenization. In practical terms, tokenization turns a claim on a real-world asset into a digital token that can be held, transferred, or used as collateral in on-chain applications. Supporters argue this can reduce settlement times, lower operational costs, and make assets more accessible through fractional ownership. A single token can represent a small slice of a bond or fund, opening the door to investors who would otherwise be locked out by high minimums or limited market access.

The growth has not been confined to a single blockchain. Ethereum remains the dominant platform for tokenized assets, hosting close to 90% of the market by value, according to several analytics firms. But competition is intensifying. Solana has seen its tokenized asset base surge to new highs in recent months, while the XRP Ledger has posted some of the fastest growth rates in non-stablecoin tokenized assets, briefly overtaking Solana in certain categories. The jockeying reflects a broader race among networks to position themselves as the preferred rails for institutional-grade assets, where reliability, compliance tooling, and liquidity matter as much as raw transaction speed.

Despite the impressive growth rates, the tokenized asset market is still small compared with traditional finance. Global bond markets alone run into the hundreds of trillions of dollars. Yet projections from banks, consultancies, and venture firms suggest tokenized securities and funds could reach $100 billion in total value by the end of 2026, with longer-term estimates stretching into the trillions over the next decade. Those forecasts are driven less by retail speculation than by the steady interest of asset managers looking to modernize back-office processes and expand distribution.

The focus of the sector is also shifting. Early tokenization efforts were largely about proving that assets could be represented on-chain at all. Now, attention is turning to liquidity and market depth. Issuing a token is no longer the hard part; ensuring there are enough buyers, sellers, and intermediaries to support meaningful trading volumes is the next challenge. Several market participants have begun to describe liquidity, not technology, as the main bottleneck to the sector’s next phase of growth.

This emphasis on plumbing rather than hype sets real-world assets apart from much of the rest of the crypto market. While meme coins and high-beta tokens continue to dominate headlines during rallies and crashes, tokenized Treasuries and funds rarely trend on social media. Their growth is measured in steady inflows rather than explosive price moves. For institutional investors, that is precisely the point. These products are designed to behave more like cash management tools or fixed-income instruments than like speculative bets.

Regulatory developments have also played a role in the sector’s momentum. In the United States and Europe, clearer guidance on custody, reporting, and asset classification has made it easier for established firms to experiment with tokenization without straying too far from existing compliance frameworks. Infrastructure providers such as DTCC have begun exploring how tokenized assets could integrate with traditional settlement systems, signaling that the concept is moving beyond pilots and proofs of concept.

At the same time, the recent market turmoil has reinforced the appeal of assets with tangible backing and predictable returns. As crypto prices fell in February, tokenized Treasury products continued to accrue interest, offering a reminder that not all on-chain assets are tied to the same boom-and-bust cycles. For portfolio managers, that distinction matters. It allows them to use blockchain-based instruments without taking on the full volatility profile of the broader crypto market.

None of this means tokenization is without risk. These products still depend on legal structures, custodians, and issuers that sit outside the blockchain. Questions around standardization, cross-chain interoperability, and secondary-market liquidity remain unresolved. And while yields on tokenized Treasuries may look attractive compared with idle stablecoins, they are ultimately tied to the same interest-rate cycles that govern traditional markets.

Still, the trajectory is clear. While much of crypto continues to revolve around price, sentiment, and narrative shifts, real-world assets are carving out a different role: as infrastructure. They are not replacing traditional finance, but increasingly acting as its extension onto new rails. In a market still known for its extremes, that quiet, methodical growth may turn out to be one of the most consequential developments of this cycle.

As February’s volatility fades from the headlines, the tokenization of real-world assets is likely to keep expanding in the background; less visible than the latest rally or crash, but potentially far more enduring in its impact on how financial markets operate.

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