Real-World Asset Tokenization
Strategic Investment Analysis & Market Opportunity
Report Date: October 2025
Executive Summary
CLNM Capital has identified Real-World Asset (RWA) tokenization as a generational investment opportunity representing $2-30 trillion in addressable market potential by 2030-2034.
The RWA tokenization market has demonstrated explosive growth, expanding from approximately $5 billion in 2022 to $24 billion by mid-2025—a 380% increase in just three years. Leading financial institutions including BlackRock, Franklin Templeton, J.P. Morgan, and Apollo have launched tokenized products, signaling mainstream institutional adoption and market validation.
Key Market Projections
- • McKinsey: $2 trillion by 2030 (base case)
- • Boston Consulting Group: $16 trillion by 2030
- • Standard Chartered: $30 trillion by 2034
The first wave of tokenization is already underway, led by money market funds ($1+ billion), tokenized treasuries ($500+ million), and gold tokenization ($2.57 billion), with subsequent waves expected to encompass private credit, real estate, commodities, and alternative investments.
Key Challenges
Regulatory uncertainty, technical infrastructure maturation, cold start problems requiring coordinated adoption, and security concerns persist across the ecosystem.
Investment Thesis
Market Opportunity
RWA tokenization represents a structural shift in how financial assets are managed, traded, and accessed. The first wave of tokenization is already underway, led by money market funds ($1+ billion), tokenized treasuries ($500+ million), and gold tokenization ($2.57 billion).
Wave Analysis Framework
Cost Efficiency
40%+ operational cost reduction through automation and disintermediation
Enhanced Liquidity
Fractional ownership and 24/7 markets unlock liquidity in traditionally illiquid assets
Transparency
Immutable on-chain records reduce fraud and improve trust
Global Access
Democratized access to premium assets previously limited to institutions
"91% of institutional investors are interested in putting money into tokenized assets, with 97% agreeing that RWA tokenization stands to revolutionize the realm of asset management."
— BNY Mellon and Celent Survey
Market Analysis by Asset Class
Gold Tokenization - $2.57B Market
Tokenized gold has emerged as one of the most successful RWA categories. Tether Gold (XAUT) reached $1.3B and Paxos Gold (PAXG) at $983M. August 2025 alone saw $437M in new XAUT minting.
Renewable Energy - $8.4B+ Infrastructure
Ant Group has connected $8.4B in Chinese renewable assets to blockchain. Enel launched Italy's first MiCA-compliant energy tokenization. Plural Energy has $40M tokenized with $150M pipeline.
Money Market Funds - $1B+ AUM
BlackRock BUIDL ($2.9B) and Franklin Templeton BENJI ($860M+) lead the category. High interest rate environment driving demand for yield-bearing tokens.
Private Credit - $140M+ & Growing
Apollo ACRED, Ondo Finance OUSG, and Figure Technologies demonstrating viability. Over $10B in blockchain-facilitated loans to date.
Real Estate - $5.4B Live, $24B Pipeline
Historic St. Regis Aspen ($18M, 2018) paving way for larger deals. $5.4 billion live tokenized real estate with $24 billion in project pipeline.
Strategic Recommendations
1. Portfolio Allocation: 5-15% to RWA Tokenization
Recommend initial 5% allocation ($50M) with path to 15% ($150M) over 24 months. Focus on Wave 1 assets (treasuries, gold) for immediate exposure, with Wave 2 positioning (private credit, real estate).
2. Diversified Strategy Across Asset Classes
Suggested allocation breakdown:
- • 35% Tokenized Treasuries/Money Markets (low risk, yield-bearing)
- • 25% Gold Tokenization (safe haven, proven market)
- • 20% Private Credit (higher yield, institutional quality)
- • 15% Renewable Energy (ESG, infrastructure exposure)
- • 5% Emerging Categories (real estate, commodities)
3. Platform & Infrastructure Partnerships
Establish relationships with: (1) Securitize/Figure for issuance infrastructure, (2) Fireblocks/Anchorage for institutional custody, (3) Major tokenization platforms (Ondo, Maple) for deal flow.
4. Regulatory & Compliance Framework
Prioritize MiCA-compliant (EU) and U.S.-regulated offerings. Work with counsel experienced in tokenized securities. Establish internal blockchain asset policies and custody procedures.
Risk Assessment & Mitigation
- • Regulatory Uncertainty: Evolving frameworks, especially in U.S.
- • Liquidity Risk: Secondary markets still developing
- • Technology Risk: Smart contract vulnerabilities, infrastructure maturity
- • Custody Risk: Key management, institutional-grade solutions required
- • Focus on regulated platforms and jurisdictions (Singapore, Switzerland, EU)
- • Prioritize liquid, exchange-traded tokens with institutional backing
- • Use established custody providers (Fireblocks, Anchorage Digital)
- • Conduct thorough smart contract audits and partner due diligence
Implementation Timeline
Q4 2025: Foundation (Months 1-3)
Infrastructure setup, custody relationships, initial $25M deployment in treasuries/money markets
Q1 2026: Expansion (Months 4-6)
Add gold tokenization, private credit exposure. Scale to $50M total allocation
Q2-Q3 2026: Diversification (Months 7-12)
Renewable energy, real estate tokenization. Reach $100M allocation
2027+: Optimization (Months 13+)
Scale to target 10-15% portfolio allocation ($100-150M), explore Wave 3 opportunities
Conclusion
Real-World Asset tokenization represents a generational investment opportunity at the intersection of traditional finance and blockchain technology. With $24 billion in current market size growing toward multi-trillion dollar potential, institutional participation from BlackRock, Apollo, and Franklin Templeton, and proven use cases across multiple asset classes, the time for strategic positioning is now.
CLNM Capital's $1 billion AUM positions us to be early movers in this transformative market shift while maintaining prudent risk management. A phased 5-15% allocation approach balances opportunity capture with portfolio discipline, leveraging our institutional relationships and due diligence capabilities to access the highest-quality tokenized assets.
Featured Case Studies
Gold Tokenization ($2.57B Market)
Prestige Wealth → Aurelion (Nasdaq: AURE)
First Nasdaq-listed tokenized gold treasury vehicle. Led by Antalpha, backed by Tether and Kiara Capital.
Tether Gold (XAUT) & Paxos Gold (PAXG)
Combined $2.57B market demonstrating sustained demand for tokenized precious metals.
RAAC x I-ON Digital - pmUSD Stablecoin
Novel hybrid model combining commodity stability with real estate income potential.
Renewable Energy ($8.4B+ Infrastructure)
Ant Group Energy Asset Tokenization
Largest single RWA tokenization initiative globally. China, Aug 2024-Sep 2025.
Enel x Conio - Italy's First MiCA-Compliant Energy RWA
First MiCA-compliant RWA token in Europe. Ebitts program, Jan 2025.
Plural Energy Platform
Mid-sized project specialist. SEC-registered, U.S., 2023-2025.
PicWe x Isfayram Hydropower
First hydropower-backed RWA. Kyrgyzstan, Oct 2025.
Biopharma (Emerging Sector)
IVD Medical Holdings x Transcenta
Hong Kong regulatory sandbox. ETHK Tower R&D hub with 5,000+ specialists.
Huajian Healthcare IVD Equipment
Hong Kong RWA sandbox. Stablecoin infrastructure leveraged.
Sector Note: Biopharma RWA remains nascent compared to gold and renewable energy. Limited tier-1 verification and smaller scale ($1-2B combined vs. $10B+ for mature sectors). High potential but requires cautious approach.
Key Infrastructure Providers
Issuance Platforms
- • Securitize - Apollo, KKR
- • Figure - $10B+ loans
- • Ondo Finance - OUSG
- • Maple Finance - Private credit
Custody Solutions
- • Fireblocks - Institution-grade
- • Anchorage Digital - OCC-chartered
- • BitGo - Multi-sig custody
- • Coinbase Custody - Regulated
Blockchain Networks
- • Ethereum - Most deployed
- • Algorand - Enel, MiCA
- • Base - Plural Energy
- • Avalanche - KKR fund
Global Regulatory Landscape
Progressive Jurisdictions
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Singapore: Project Guardian (MAS) with Citi, Fidelity, BNY Mellon, JPM
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Hong Kong: $800M tokenized green bond, RWA sandbox (Aug 2025)
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Switzerland: Long-standing crypto-friendly regulation
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European Union: MiCA regulation (comprehensive framework)
Evolving Jurisdictions
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United States: Largest market but regulatory uncertainty (SEC position unclear)
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China: Permissioned blockchains encouraged (AntChain $8.4B), crypto banned
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Germany: Electronic Securities Act, Siemens $60M digital bond
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France: Crédit Agricole/SEB sustainable digital bond platform
Industry Leadership Quote
"The next generation for markets, the next generation for securities, will be tokenization of securities."
— Larry Fink, CEO of BlackRock
CLNM Capital | Confidential Investment Report
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