The Rise of Real World Asset Tokenization: How Blockchain is Transforming Traditional Asset Markets
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Rapid Growth of the Real World Asset Tokenization Market
As of December 2025, the real world asset tokenization market has emerged as one of the most prominent areas within the blockchain ecosystem. According to the latest report by digital asset research firm Chainalysis, the total market capitalization of tokenized real world assets has surpassed $150 billion, marking a 340% growth compared to the previous year. This accounts for approximately 6.2% of the total cryptocurrency market capitalization, a significant increase from just 0.8% in 2022.
Goldman Sachs, headquartered in New York, announced in a December research report that the tokenized asset market is expected to grow to $5 trillion by 2030. This represents about 1.8% of the current global real estate market size of $280 trillion. Notably, the real estate tokenization sector is leading the growth, accounting for 68% of the entire market, followed by art and collectibles (12%), commodities (11%), and infrastructure assets (9%).
JPMorgan Chase’s Onyx platform, also based in New York, has recorded an average monthly tokenization trading volume of $45 billion for institutional investors, reflecting a 280% increase compared to the same period last year. BlackRock, headquartered in New York as well, announced that its tokenized money market fund ‘BUIDL’ has surpassed $550 million in assets under management (AUM), maintaining its position as the largest in the industry. These figures indicate that traditional financial institutions are beginning to recognize blockchain-based asset tokenization as a core business area rather than just an experiment.
The tokenization trend is also strong in the Korean market. Samsung SDS, headquartered in Seoul, announced that it is conducting the largest real estate tokenization project in the country through its self-developed ‘Nexledger’ platform. It plans to tokenize three commercial real estate buildings in the Gangnam area, issuing digital securities worth a total of 120 billion won, allowing individual investors to participate with a minimum investment of 1 million won. LG CNS, also based in Seoul, has launched the ‘LG CNS Tokenization Platform’ to offer tokenization services for small and medium-sized enterprise assets.
The appeal of real world asset tokenization lies in its ability to fractionalize traditionally high-barrier, low-liquidity assets, making them accessible to general investors. For example, a commercial property worth 10 billion won can be divided into 100 million tokens, enabling individual investors to invest in the property in units as small as 100 won. Additionally, blockchain’s 24/7 trading capability and global accessibility provide significantly higher liquidity compared to the traditional real estate market.
Technological Innovation and Regulatory Changes
Advancements in tokenization technology are also accelerating market growth. The ERC-3643 standard on the Ethereum network has established itself as the global standard for security tokens, facilitating the issuance of tokens that meet regulatory requirements. This standard is designed to automatically handle regulatory requirements such as Know Your Customer (KYC), Anti-Money Laundering (AML), and residency restrictions at the smart contract level. As a result, token issuance and management costs have been reduced by 70% compared to traditional methods, and compliance processing times have been shortened from weeks to days.
On the Polygon network, a layer 2 solution dedicated to real estate tokenization called ‘Real Estate Chain’ has been launched, reducing transaction fees to as low as $0.001 per transaction. This represents a 99.9% reduction compared to the Ethereum mainnet, creating an environment where small investors can invest in tokenized assets without burden. The Avalanche network has also announced the construction of dedicated blockchains for each asset using subnet technology, increasing transaction processing speeds to 4,500 transactions per second.
Positive changes are also occurring on the regulatory front. The U.S. Securities and Exchange Commission (SEC) announced new guidelines for tokenized real world assets in September 2025, stating that a simplified registration process will be applied if certain conditions are met. Consequently, the token issuance approval period has been shortened from 6-12 months to 2-3 months, and issuance costs have been reduced by an average of 30%. The European Union (EU) is also providing an innovative regulatory sandbox by categorizing tokenized real world assets separately under the Markets in Crypto-Assets Regulation (MiCA).
In Korea, the Financial Services Commission clarified through the enforcement decree of the ‘Digital Asset Basic Act’ in December that tokenized real world assets are classified as ‘digital securities’ and are subject to existing capital market laws. This has resolved legal uncertainties, paving the way for domestic financial institutions to actively enter the tokenization business. The Korea Exchange (KRX) announced plans to open a separate market for trading tokenized assets in the first half of 2026 and is currently building a blockchain-based trading system.
Examining real-world examples, Singapore-based real estate tokenization platform ‘PropertyGPT’ tokenized an office building in the heart of London’s financial district for $85 million this year, achieving a complete sell-out from 23,000 investors worldwide. Investors were able to participate with a minimum investment of $1,000, and the tokens recorded an average return of 12.7% over six months, significantly outperforming the average return of 4.2% in the London commercial real estate market during the same period.
Swiss art tokenization platform ‘Masterpiece’ tokenized Picasso’s work ‘Guernica Series No.7’ for $24 million, dividing it into 2.4 million tokens for sale. Each token was priced at $10, with a total of 180,000 investors from 87 countries participating. Ownership of the artwork is transparently managed through smart contracts, and token holders receive a portion of the annual exhibition revenue as dividends. This project is significant in that it opened up investment in high-value artworks, previously accessible only to the wealthy few, to the general public.
In the commodity tokenization sector, the London Metal Exchange (LME) has launched tokenization services for major metals such as gold, silver, and copper. Physical metals are stored in certified vaults in London and Zurich, and token holders can withdraw the physical assets at any time. To date, a total of $1.2 billion worth of metals have been tokenized, with an average daily trading volume of $35 million. This offers advantages such as 70% lower management fees and 24/7 trading capability compared to traditional metal ETFs.
With the advancement of tokenization technology, new financial products are also emerging. ‘Synthetic tokens’ are derivatives linked to the price fluctuations of assets without direct ownership, enabling more diverse investment strategies. Additionally, ‘fractional NFTs’ allow for fractional ownership of high-value digital assets, contributing to increased liquidity in the virtual real estate and digital art markets within the metaverse.
However, alongside the rapid growth of the tokenization market, several challenges have also emerged. The most significant issue is maintaining the link between tokens and real world assets. While tokens on the blockchain are immutable, physical assets are subject to risks such as damage or loss. To address this, collaborations with insurance companies are expanding, and the adoption of IoT technology for real-time monitoring of physical asset conditions is increasing. Additionally, the valuation methodology for tokenized assets has yet to be standardized, making it difficult for investors to trade at fair prices.
Market liquidity remains a challenge. Although tokenization theoretically allows for 24/7 trading, in practice, the lack of buy-sell orders can lead to significant price fluctuations during large transactions. Automated market-making systems and liquidity provision programs by institutional investors are being introduced to address this, but they have not yet reached a sufficient level. Nevertheless, within the massive trend of digitalizing traditional assets, the tokenization market is expected to continue its growth. The use of artificial intelligence for automated valuation systems and improvements in cross-chain interoperability are anticipated to further accelerate this growth.
This article is intended for informational purposes only and does not constitute investment advice or recommendations. All investment decisions should be made at the discretion and responsibility of the individual, and thorough research and consultation with experts are recommended before investing.
