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The market for real-world assets represented as digital tokens (RWAs) nearly reached $300 billion in 2025. Experts predict this market could potentially soar to $30 trillion by 2034.
Stablecoins are significantly contributing to this expansion. The supply of stablecoins on the Ethereum network hit a record high of $165 billion this week. However, with payment challenges like inflated costs, complicated processes, and poor user experiences, are blockchain infrastructures ready to support this growing demand?
While the RWA tokenization process is improving, crypto innovators recognize that a truly friction-free system is still a work in progress.
Aishwary Gupta, Global Head of Payments at Polygon Labs, acknowledges, “It’s constantly evolving.” Drawing from his experience in traditional web2 payment systems and treasury management at American Express (“moving money internationally”), Aishwary believes the technology itself isn’t the primary obstacle. Instead, the underlying technical frameworks are developing rapidly.
“Polygon has recently upgraded to handle 1,000 transactions per second (TPS), and we anticipate reaching around 5,000 TPS within the next two months. The necessary infrastructure is already in place… Polygon could theoretically handle 50,000 transactions per second, provided the demand exists.”
Aishwary notes that while previous scaling issues are becoming less of a concern, they are being replaced by new challenges, notably regulatory uncertainty and limited liquidity.
A Stark Difference Over Four Years
Aishwary joined Polygon in 2021, becoming their “first full-time employee focused on DeFi.” He emphasizes a monumental shift in tokenized payments since then. According to Aishwary, transaction fees were significantly higher, and the user onboarding process was considerably more challenging four years ago.
“Four years ago, onboarding fees could be as high as 5% or even 10%. You might have to try several different services before one worked successfully. The transition from that environment to today has made conducting transactions and accessing onboarding services much simpler. Although we haven’t reached full maturity, the process has become noticeably smoother over the past four years.”
Aishwary attributes the current fee structure to market dynamics and the fragmented regulatory landscape:
“Certain markets only have one or two authorized operators because they have either obtained licenses or are participating in regulatory sandboxes. This limited number of authorized entities for on-ramps and off-ramps creates opportunities for arbitrage…
On-chain transactions remain cost-effective, often costing only a single cent, even for transactions involving billions of dollars… The primary obstacle is regulatory arbitrage.”
Regulatory Clarity: Who is Leading the Tokenization Initiative?
If stablecoin issuers and other tokenized RWA providers are strategically using regulatory arbitrage, where are they operating? Which regions are creating a favorable environment for the expected growth of this sector by adopting and promoting the technology?
Aishwary identifies four primary regions: the world’s main financial centers—the U.S., Singapore, Europe, and the Middle East:
“We are seeing significant adoption in these four regions.”
He indicates that the U.S. is now leading the way after lagging due to regulatory uncertainty. As BitMEX CEO Stephan Lutz mentioned, the Trump administration significantly altered the landscape with the GENIUS Act, which provides clear guidelines for stablecoin issuance and offers much-needed regulatory clarity for U.S. issuers.
Singapore is also a frontrunner in the tokenized RWA space, specifically regarding stablecoins. Its Payment Services Act and Financial Services and Markets Act establish a transparent licensing framework for digital token service providers, closely monitored by the Monetary Authority of Singapore and compliant with international AML/CFT standards.
Leading companies like Nium, Zodia Custody, and Crypto.com have chosen Singapore because of its innovative payment solutions and regulatory structure. Aishwary adds:
“Outside of U.S. dollars, Singapore dollars account for the second-highest volume in the payment sector.”
Aishwary sees Europe as an example of “steady and deliberate” progress. While the MiCA legislation could use improvements, he acknowledges the “extensive due diligence” conducted for stablecoin issuers. Established firms like Bitstamp and Fireblocks now provide regulated digital asset payment services under the MiCA framework.
The Middle East is also quickly advancing. In Abu Dhabi, for example, regulators have defined requirements for banks issuing stablecoins, establishing clear rules for reserve management and compliance.
Capital Seeks Investment Returns
Given Aishwary’s mention of the GENIUS Act, he was asked about the yield clause, which prohibits stablecoin issuers from offering interest or yield to holders. He states:
“The issue is that capital held in banks is earning at least some interest, even if it’s minimal. If the same dollar earns better interest on-chain versus off-chain, people would prefer to keep their funds on-chain, which would impact the entire banking system.”
Indeed, both traditional financial institutions and crypto-native asset managers are increasingly looking for yield in on-chain products, such as tokenized U.S. Treasuries, private credit, and regulated money-market funds.
By mid-2025, assets under management (AUM) in tokenized Treasuries had surpassed $7.4 billion. Major players like Goldman Sachs, BNY Mellon, and Securitize are actively allocating capital to these products for higher yields, immediate settlement, and flexible collateralization, often outperforming conventional off-chain bank instruments.
Emerging RWA Tokenization Trends Beyond Stablecoins
The conversation then moved from stablecoins to broader RWA tokenization trends. While tokenized stocks are gaining popularity among centralized exchanges like Kraken and Coinbase, and DeFi platforms like Synthetix and Mirror Protocol, Aishwary offers a candid perspective:
“Everyone is caught up in the hype around tokenized stocks, believing they are the next big thing. Polygon explored tokenized stocks a year and a half ago, but they didn’t gain traction. There’s simply no demand.”
He explains the reasons for the limited interest:
“Unless you’re located in a place like North Korea and lack access to Apple shares, most individuals already have access to these stocks through their bank accounts, regardless of whether they reside in India, Dubai, or elsewhere. Tokenization doesn’t really target those who lack access.”
He also highlights the unresolved issue of liquidity.
“The on-chain liquidity is currently a major problem. It’s insufficient, often leading to unfavorable quotes and rates.”
Not the breakthrough many had hoped for.
Commodities and Non-USD Stablecoins
Where does Aishwary see genuine potential in the tokenized money space? He identifies two significant trends that he believes are currently “underappreciated”: non-USD stablecoins and tokenized commodities.
“Polygon holds over 50% or 60% of the total market share for non-USD stablecoins, and this is growing. We are actively expanding our efforts in this area. Tokenized commodities, such as gold and silver, also have potential for increased accessibility and tradability.”
Globally, non-USD stablecoins make up approximately 30% of volumes in active cross-border transactions outside the United States.
The global market for tokenized commodities reached about $25 billion in 2024, with gold tokens accounting for ~$1.7 billion. Tokens representing oil, silver, and agricultural commodities are also steadily increasing their market share. Aishwary adds:
“We already have these commodities or assets on the blockchain, but they haven’t evolved into self-contained ecosystems, which is a missing element.”
The Path to $30 Trillion
As tokenized RWAs expand into the trillions, it will be fascinating to see how the space develops. With gold reaching record highs as governments strategically increase their reserves of this hard asset, it is logical that tokenized gold will follow.
Tokenization has quickly evolved from proof-of-concept trials to global infrastructure within just a few years. Billions are now being invested in diverse real-world assets across various continents.
The focus moving forward extends beyond scaling and overcoming regulatory obstacles. It is about identifying how the industry can generate new forms of value and utility, extending far beyond the current uses of stablecoins.