Tokenization of real-world assets (RWAs) is evolving from an abstract concept to a practical financial tool as institutional players increasingly test and deploy blockchain-based infrastructure at scale.

This past week alone saw a flurry of announcements from both traditional financial institutions and blockchain-native firms advancing their RWA initiatives.

On April 30, BlackRock filed to create a digital ledger technology shares class for its $150 billion Treasury Trust fund. It will leverage blockchain technology to maintain a mirror record of share ownership for investors.

The DLT shares will track BlackRock’s BLF Treasury Trust Fund (TTTXX), which may only be purchased from BlackRock Advisors and The Bank of New York Mellon (BNY).

On the same day, Libre announced plans to tokenize $500 million in Telegram debt through its new Telegram Bond Fund (TBF). The fund will be available to accredited investors and usable as collateral for onchain borrowing.

The week’s biggest headline came from Dubai, where MultiBank Group signed a $3 billion RWA tokenization deal with United Arab Emirates-based real estate firm MAG and blockchain infrastructure provider Mavryk. The deal is touted as the largest RWA tokenization initiative to date.

Source: MultiBank

“The recent surge isn’t arbitrary. It’s happening because everything’s lining up,” Eric Piscini, CEO of Hashgraph, told Cointelegraph:

“Rules are getting clearer in major markets. The tech is stronger, faster, and ready to scale. And big players are actually doing it — BlackRock is tokenizing funds, Citi is exploring digital asset custody, and Franklin Templeton has tokenized money market funds on public blockchains.”

Related: Real-world asset tokenization: Unlocking a new era of finance

Tokenization has moved beyond theory

Marcin Kazmierczak, co-founder of RedStone, said the recent announcements “demonstrate that tokenization has moved beyond theoretical discussions into practical application by market leaders.”

He added that the growing adoption by big institutions gives the space more credibility, making others feel more confident to join in and help boost new ideas and investments.

Kazmierczak stated that the renewed interest in RWA tokenization is primarily driven by US President Donald Trump’s pro-crypto administration and growing regulatory clarity.

Trump, who has pledged to “make the US the crypto capital of the world,” has taken a different approach to crypto compared to the Biden administration. That era saw an aggressive crackdown from the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), prompting many firms to withdraw from US operations.

However, the narrative appears to be shifting. Since Trump’s election victory, the SEC has dropped or paused over a dozen enforcement cases against crypto companies.

Additionally, the DOJ recently announced the dissolution of its cryptocurrency enforcement unit, signaling a softer approach to the sector.

Source: ALX

Aside from regulatory clarity, advancements in technological capabilities, especially in wallets, have also played a key role in driving tokenization adoption, Felipe D’Onofrio, chief technology officer at Brickken, said.

“In parallel, macroeconomic pressures are pushing institutions to search for efficiency and liquidity in traditionally illiquid markets,” he added.

Related: New era in mining: How tokenization can transform the salt industry

Ethereum remains main hub for tokenization

Ethereum continues to serve as the primary hub for RWA tokenization, thanks to its mature ecosystem, broad developer support and robust infrastructure.

“Ethereum remains by far the most suitable blockchain for large-scale RWA issuance due to its unparalleled security, developer ecosystem, and institutional adoption,” Kazmierczak said.

However, he noted that dedicated RWA-specialized ecosystems like Canton Network, Plume, and Ondo Chain are building compelling alternatives with features designed explicitly for compliant asset tokenization.

According to data from RWA.xyz, the market value of tokenized US Treasurys currently stands at $6.5 billion. Ethereum accounts for the lion’s share of the market, hosting over $4.9 billion in tokenized Treasurys.

Source: RWA.xyz

Herwig Koningson, CEO of Security Token Market, said companies like BlackRock have shown that it’s possible to build large-scale tokenized products, worth billions of dollars, using more than one blockchain at the same time.

He said this shows that the success of tokenizing assets doesn’t depend so much on which blockchain is used, but rather on what the company needs the system to do.

“This is why you will see many banks and traditional firms use permissioned blockchains or even private DLT systems,” Koningson said.

Related: $21B tokenized RWA market doubtful, institutions uninterested — Plume CEO

Challenges remain, but growth potential is huge

Yet hurdles remain. Regulation continues to be a significant barrier, especially for risk-averse institutions requiring guarantees around compliance and privacy.

Technical limitations also persist, chiefly the lack of interoperability between blockchain platforms, according to Piscini. However, he said hybrid models are gaining traction by offering the privacy of permissioned systems with optional future interoperability with public chains.

Looking ahead, Piscini estimated that more than 10% of global financial assets could be tokenized by the end of the decade. D’Onofrio also made a modest projection, estimating that between 5% and 10% of global financial assets could be tokenized by 2030.

On the other hand, RedStone’s Kazmierczak predicted that approximately 30% of the global financial system will be tokenized by the end of this decade.

In terms of numbers, STM.co predicted that the world’s RWA market will be anywhere between $30 and $50 trillion by the end of 2030.

Most firms predict that the RWA sector will reach a market size of between $4 trillion and $30 trillion by 2030.

If the sector were to achieve the median prediction of about $10 trillion, it would represent more than 50 times the growth from its current value of around $185 billion, including the stablecoin market, according to a Tren Finance research report.

Magazine: Tokenizing music royalties as NFTs could help the next Taylor Swift

Key points:

Bitcoin attacks liquidity clustered close to spot price into the weekly close.

Market commentators eye significant BTC price levels below $95,000.

The Fed’s upcoming interest rate decision is the key macro event to watch next week.

Bitcoin (BTC) fell toward $95,000 into the May 4 weekly close as traders braced for more macro-induced downside.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

BTC price liquidations mount after 10-week highs

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD retreating from multimonth highs toward the May open.

Hitting liquidity clustered around spot price, Bitcoin created a recipe for volatility as market participants discussed key levels.

“Dense longs cluster 95.7k-96k, heavy shorts 96.5k-97k right around current price (~96.2k),” popular trader TheKingfisher wrote in part of ongoing analysis on X. 

“These are price magnets. Expect chop/volatility as they get tested.”BTC liquidation heatmap. Source: CoinGlass

The latest data from monitoring resource CoinGlass showed price colliding with buy liquidity, with the majority of asks clustered around $97,200.

With the past week seeing multiple liquidity “grabs,” some saw the potential for that behavior to continue as the key $100,000 mark edged closer.

$BTC

Gap and tap before liquidity grab at $100k is what I’m looking for here https://t.co/akVEzc3Aaj pic.twitter.com/igCptK8VIp

— NiFτy (@niftyinvest) May 4, 2025

“Positions from $94K–$97K flushed at weekend,” popular trader BitBull summarized.

Assessing the potential for a fresh dip, crypto trader, analyst and entrepreneur Michaël van de Poppe said that BTC/USD had plenty of room to retest support while still maintaining its recent comeback.

“What I’d prefer to see on $BTC is that we’re holding above $91.5-92K,” he told X followers on the day.

“That validates for me the continuation towards a new ATH as the previous range support becomes support again.”BTC/USDT 1-day chart. Source: Michaël van de Poppe/X

Bitcoin downside expected into Fed rate cut decision

Expectations of volatility were high heading into the new week, with the US Federal Reserve due to decide on interest rates.

Related: Bitcoin hodler unrealized profits near 350% as $100K risks sell-off

As Cointelegraph reported, the stakes for market sentiment are high before the event. Recession warnings and pressure from President Donald Trump combine with hawkish signals from Fed officials.

NOTE: In less than a month, Trump has pressured Powell and the Fed to lower interest rates three times already… pic.twitter.com/qaQc7zJnuw

— André Dragosch, PhD (@Andre_Dragosch) May 2, 2025

The latest data from CME Group’s FedWatch Tool nonetheless maintains minimal odds of a rate cut on May 7.

Fed target rate probabilities for May 7 FOMC meeting. Source: CME Group

“Remind yourself that Crypto & Altcoins have the temper to be correcting in the week prior to the FED meeting,” Van de Poppe commented. 

“I suspect that we’d be having the end of that correction around Tuesday and go up from there.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Opinion by: Markus Bopp, CEO of TAP Protocol

Not long ago, the idea of Bitcoin as a government-backed reserve asset seemed like a stretch. The US Federal Reserve’s move to establish a Strategic Bitcoin Reserve marks a clear turning point. Once dismissed as a speculative asset or niche investment, Bitcoin is increasingly being treated by some governments and financial institutions as a national store of value.

This evolution puts blockchain development at a crossroads. On one hand, memecoins, once dismissed as internet jokes, have dominated transaction volumes and social buzz on leading platforms. On the other hand, institutions and governments are taking the world’s most popular cryptocurrency — Bitcoin (BTC) — seriously and investing in infrastructure to secure it for the long term.

If Bitcoin is to be treated like gold, it must be secured like gold. Very soon, we will see governments and institutions seek to secure Bitcoin in what will no doubt look like a digital Fort Knox. With more institutional and instrumental influence over the most valuable digital asset in the world, verifiable storage, hardened security protocols and structures built on resilience will become paramount. 

This shift could raise the stakes for developers. As institutional adoption rises, so does the demand for specialized developers capable of delivering institutional-grade security and long-term stability.

What does this demand mean for the developer community that made Bitcoin what it is today? How will this affect the grassroots development built on Bitcoin’s core principles of full decentralization and transparency? Will a more institutional Bitcoin leave room for innovation, or is this the end of Bitcoin decentralized finance (DeFi)?

Bitcoin’s institutional turn 

Bitcoin, the first and most widely recognized cryptocurrency, was designed to operate outside of traditional systems. Yet the moment governments and traditional institutions stopped keeping their distance, the future of Bitcoin has begun to pivot. What was once met with skepticism now draws a new kind of curiosity.

The same players who once warned against digital assets are now staking their claims. The International Monetary Fund’s latest Balance of Payments Manual now classifies digital assets like Bitcoin as part of the international financial system, placing it firmly alongside traditional reserves and gold.

As of January 2025, governments worldwide hold an estimated total of 471,000 BTC, worth over $16.3 billion. Strategy continued to lead and cross its Bitcoin holdings at a corporate level, doubling down on the cryptocurrency as a long-term strategic play. 

Recent: Bitcoin DeFi surge may boost BTC demand and adoption — Binance

This kind of institutional recognition validates Bitcoin’s core principle but also throws it into flux. Holding it in sovereign reserves, governments are simultaneously affirming its legitimacy while also conforming it to the very system it was meant to disrupt. 

The changing developer landscape

As the crypto landscape continues to evolve, fresh talent is still entering the space. There’s no guarantee all will stay. In 2024, the total number of developers in the industry declined by 7% year-on-year. Yet seasoned and established developers saw a 27% increase in activity, contributing to a record share of the industry’s output.

While opportunities for small-scale contributors may be fading, the ecosystem supports a core of experienced builders, a signal that the space is maturing. The influx of institutional investors to crypto like Bitcoin is likely to drive up Bitcoin’s price, a consequence that might see them price out smaller developers and create an even higher barrier to entry. 

As the stakes around Bitcoin continue to rise, the demand is no longer just for innovation. It’ll be for security, compliance and infrastructure that can meet enterprise-grade “Fort Knox” level expectations.

We’ll see a new wave of specialized developers stepping up to build intelligent, compliant and institutional-grade decentralized applications. From secure custody solutions to regulated exchanges and seamless bridges, institutional and government demands will shape the next phase of Bitcoin development.

A new infrastructure 

As Bitcoin integrates more deeply into institutional finance, the development focus is maturing from experimentation to durability, compliance and security. Developers will likely focus on building not directly on Bitcoin but instead with Bitcoin. Bitcoin DeFi has so far been celebrated as a way to unlock open finance with the world’s most popular cryptocurrency, and it still might. Still, its future will depend on incoming compliance and regulatory frameworks. 

If governments go down the path of shoehorning the asset into traditional financial models, we’ll find developers seeking ways to bridge Bitcoin’s liquidity and value to more operable, friendlier chains. If governments are open to preserving Bitcoin’s core offering as a new, borderless and decentralized currency, that will signal the community to continue innovation.

The question for the community then isn’t whether Bitcoin can support innovation under institutional oversight. It’s whether Bitcoin can thrive in a world that could now seek to contain it.

Opinion by: Markus Bopp, CEO of TAP Protocol.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.