Data compiled by Woofun AI shows that the on-chain tokenization of real-world assets has expanded to $28.2 billion, representing a 500% increase from early 2025 levels and touching a peak of $31.8 billion. Tokenized U.S. Treasury bonds and money market funds dominate the sector, accounting for nearly 60% of the total market value at approximately $17 billion. Within this category, BlackRock BUIDL and Hashnote USYC have each surpassed the $3 billion threshold in scale.

Meanwhile, tokenized stocks have emerged as a high-growth segment, surging over 170% this year, significantly outpacing the roughly 60% growth observed in tokenized Treasuries.

This acceleration is driven by stablecoin expansion, institutional capital inflows, and evolving regulatory frameworks like CLARITY and MiCA.

However, structural bottlenecks have shifted from issuance to redemption mechanisms and DeFi composability. Consequently, only about $3 billion of the total RWA supply has integrated into DeFi protocols, resulting in a penetration rate of merely 10%.