According to the latest analysis from Bernstein Research, the tokenization of real-world assets (RWA) is on the rise, with these tangible assets being traded through blockchain technology. Since the beginning of the year, this market has grown by 42%, reaching a total market value of $51 billion. This remarkable growth is primarily attributed to the increase in private credit shares, a process made possible through blockchain platforms.
Why is private credit gaining popularity?
The report notes that private credit assets now account for 44% of the entire tokenized market. This surge is due to the rapid adoption of blockchain in lending and asset management. Different analytical platforms have varying estimates for the volume of circulating RWAs. RWA.xyz reports a total tokenization amount of $34 billion, while Bernstein highlights a higher figure of $51 billion, showcasing the market's volatility and rapid expansion.
Institutional investors are beginning to enter this space. Renowned financial institutions like BlackRock have launched blockchain-focused money market funds. The BUIDL fund has accumulated over $2.5 billion in assets in a short period.
How is Figure Technology Solutions leading the charge?
Figure Technology Solutions has established a dominant position in the private credit sector, facilitating the tokenization and trading of credit assets through its blockchain platform. Currently managing $18 billion in assets, Figure is at the forefront of this field. Competitors like Securitize and Paxos have each reached approximately $4.2 billion in asset size by converting U.S. Treasury bonds, commodities, and stocks into tradable assets.
According to Bernstein's forecast, “By 2026, it is expected that $5 billion in consumer credit will be tokenized through Figure, with a record monthly credit volume of $1.3 billion reached just in April.”
On platforms like Figure's Connect credit market, advancements in infrastructure are expected to enable 56% of all transactions to be conducted digitally by the first quarter of 2026.
Ross Shemeliak, co-founder of Stobox, mentioned that two catalysts driving the boom in private credit are investors' pursuit of high returns and companies' demand for new sources of capital. While U.S. Treasury bonds have traditionally been the preferred choice for institutional investors, private credit promises higher profitability.
Shemeliak stated, “The real transformation is that blockchain is quietly becoming the infrastructure of global capital markets.”
Bernstein Research points out that emerging analytical technologies and cutting-edge science play a crucial role in refining market estimates, but they did not provide specific comments on further data inquiries.