Real-World Assets Fuel Stablecoin Growth in On-Chain Finance

The tokenized real-world asset (RWA) market is maintaining strong momentum in 2025, following a year of rapid growth. A recent joint report by BCG and Ripple further projects that the global RWA market could reach $18 trillion by 2033, with stablecoins expected to facilitate over 80 percent of related transactions.

Institutional Momentum Accelerates Adoption

Major financial institutions such as BlackRock are actively expanding the RWA (real asset tokenization) ecosystem, which increases demand for on-chain assets such as stablecoins. Last year, BlackRock launched the USD Institutional Digital Liquidity Fund (BUIDL) on Ethereum and secured $245 million in deposits during its first week. It now manages $2.47 billion in tokenized U.S. Treasuries, approximately 42 percent of that segment. The successful launch of the BUIDL fund has attracted institutional capital and accelerated the integration of traditional finance and crypto assets.

Meanwhile, JPMorgan is exploring the tokenization of real estate and commodities, while Société Générale’s SG-FORGE has issued EUR CoinVertible to support European bond trials.

In Hong Kong, Standard Chartered is piloting an HKD-pegged stablecoin to support tokenized property transactions. DeFi protocols such as Centrifuge are integrating RWAs into lending markets, using USDC as collateral to bridge traditional and decentralized finance.

Institutional adoption continues to rise, as financial firms leverage blockchain infrastructure to tokenize traditional assets and improve operational efficiency. This acceleration reflects growing confidence in blockchain’s ability to streamline asset ownership and settlement.

Addressing Regulatory and Technical Challenges

Despite rapid growth, the RWA sector faces ongoing regulatory and operational hurdles. Fragmented rules across jurisdictions, stringent KYC and AML requirements, and the complexity of reconciling on-chain records with traditional asset registries continue to slow adoption.

Stablecoins help mitigate these challenges by providing a reliable and programmable settlement layer. They offer price stability that is essential for transactions involving tokenized real estate or fixed-income products. Programmable smart contracts further automate key processes such as escrow, compliance verification, and corporate actions, helping issuers meet standards set by regulatory initiatives.

Regulated Stablecoins and the Institutional Imperative

As tokenized assets gain traction in capital markets, the demand for auditable, redeemable, and legally recognized stablecoins continues to grow. Stablecoins issued under regulatory oversight are increasingly seen as trusted settlement instruments, particularly when they meet high standards in reserve management, periodic attestations, and operational compliance. These requirements provide the legal certainty and operational assurance that institutional participants need when engaging with tokenized assets.

The importance of such safeguards is further underlined by recent observations from the Bank for International Settlements. As more real-world assets become tradable on-chain, DeFi’s previously self-contained nature dissolves, potentially widening the transmission channels between crypto markets and the broader financial system. This development highlights the urgency of establishing stablecoin frameworks that are not only technically robust but also institutionally credible.

In practical terms, regulated stablecoins are quickly becoming more than just a preferred option — they are evolving into a functional necessity. Financial institutions and infrastructure providers may soon be bound by policy or legal mandate to settle only with tokens issued under licensed frameworks. In this context, stablecoins that lack transparency, auditability, or regulatory recognition risk exclusion from key roles in the expanding RWA ecosystem.

Regional Stablecoins Unlock Local Markets

As tokenized financial markets grow beyond U.S. dollar-dominated systems, demand is likely to shift toward stablecoins denominated in regional currencies. This transition presents both a regulatory and technical challenge for stablecoin issuers, requiring them to deliver not only reliable local fiat anchors but also ensure compliance with each jurisdiction’s licensing regimes and capital controls. For issuers with multi-chain infrastructure and compliance-ready operations, non-dollar stablecoins represent a strategic opportunity to support localized RWA ecosystems at scale.

Building the Next Generation of Financial Infrastructure

Tokenized finance is entering a new phase, with stablecoins driving the connection between traditional financial systems and decentralized platforms. The acceleration of real-world asset (RWA) markets into regulated capital markets underscores the demand for stablecoins that deliver both scalability and institutional-grade compliance.

This evolution is also fueling demand for local-currency stablecoins, enabling more localized asset ecosystems and cross-border liquidity. For issuers with multi-chain infrastructure and regulatory-ready operations, non-dollar stablecoins represent a strategic pathway to support emerging tokenized finance markets.

Ultimately, trusted and compliant stablecoins will anchor the settlement layer of future financial infrastructure, ensuring the reliability, transparency, and interoperability demanded by both global and regional markets.

About GMO-Z.com Trust Company

GMO Trust connects traditional finance and blockchain technology for everyone. We issue GYEN, the world’s first regulated Japanese Yen stablecoin, and ZUSD, our trusted U.S. Dollar stablecoin. Visit our website to learn more.

Disclaimer
This content is not financial advice and it is not a recommendation to buy or sell any financial instruments, FX trading, cryptocurrency or engage in any trading or other activities. You must not rely on this content for any
financial decisions. Acquiring, trading, and otherwise transacting with financial instruments or cryptocurrency involves significant risks.

We strongly advise our readers to conduct their own independent research before engaging in any such activities. GMO Trust does not guarantee or imply that any cryptocurrency or activity described in this content is available or legal in any specific reader’s location. It is the reader’s responsibility to know the applicable laws in their country.