The Reality of RWA Growth: A Closer Look at the Numbers

In the ever-evolving world of Real World Assets (RWAs), the landscape is filled with impressive statistics that often lack substance. Concerns grow around the credibility of tokenized assets as institutions struggle to verify the claims being made. The industry must address these challenges to build a trustworthy environment that attracts institutional investment.

Key Takeaways

Many reported figures in the RWA space are exaggerated and lack transparency.
Institutions are becoming cautious as they can't distinguish between legitimate projects and those relying on hype.
Real adoption should prioritize verifiable activity and regulatory compliance.
Examples of successful RWA implementations prove the importance of transparency and accountability.

Not all RWA growth is real, and the industry knows it

The Illusion of RWA Growth

Not all the sensational RWA figures circulating in the news hold true value; they are often illusions. Without substantial changes, the industry risks losing the trust it has worked hard to establish with institutional investors. Week after week, new announcements boast of billions in tokenized assets, but when institutions ask for fundamental details, responses often lack clarity.

For example, OpenAI had to clarify its disassociation from Robinhood’s claims about offering tokenized stocks, noting they do not equate to real equity in the company. Additionally, in May 2025, the SEC charged Unicoin for misleading claims regarding the value of tokenized real estate projects.

With ongoing issues like double-counting and uncertain legal statuses surrounding many tokens, it's evident that the RWA movement still deals with critical challenges in gaining credibility.

The Dangers of Vanity Metrics

Ian Balina, CEO of Token Metrics, highlighted a significant risk: relying solely on legal structures and blockchain technology does not inherently create value. He emphasized that without reliable secondary markets, true composability, and trusted custody solutions, tokenized assets remain more about marketing than real investment opportunities.

This perspective is crucial. When dashboard data is treated as the ultimate measure of success, it negatively impacts the perception of legitimate projects. If institutional due diligence teams cannot differentiate between authentic implementations and inflated Total Value Locked (TVL) numbers, they may opt to avoid the market entirely.

The core value of blockchain lies in its promise of transparency and easily verifiable information. Yet, we find ourselves in a position where institutions are expected to trust numbers that we can't substantiate.

Addressing Trust Issues

Chains that cannot provide verifiable actions or conform to regulatory standards pose risks not only to their users but to the integrity of the entire blockchain ecosystem. Such practices elevate expectations while simultaneously eroding trust in the tokenization model.

To maintain momentum and realize the potential of RWAs, there is an urgent need for transparent, regulated deployments that correlate with genuine market adoption, rather than fictitious metrics.

So, what does authentic RWA adoption look like? States like Wyoming are leading by example. In September, they launched the first state-backed stablecoin, FRNT, which has full regulatory approval and fully auditable reserves. Similarly, in Japan, the legally compliant yen stablecoin JPYC is creating demand for Japanese government bonds and solving real payment issues—a stark contrast to fleeting dashboard statistics.

Another notable initiative is in the Philippines, where government budget records are being put on-chain to combat corruption and enhance transparency in spending. This initiative allows millions of citizens to verify financial records in real-time—this is the kind of adoption that truly matters.

Furthermore, BlackRock's BUIDL fund has surpassed $1 billion in assets under management, indicating strong institutional interest in on-chain money market funds. Likewise, Apollo’s ACRED project enhances credit market efficiency through blockchain. Both initiatives demonstrate tangible benefits with real capital and users.

Stripe’s decision to incorporate blockchain for global payment solutions emerged from their need for a reliable and active transaction environment, rather than a focus on social media metrics.

The Importance of Transparency

Any blockchain claiming leadership in the RWA space should be able to present substantial evidence in support of its claims. Relying on easily manipulated TVL figures won't suffice. Institutions should ask for proof related to regulatory approvals, willing institutional partners, actual transaction volumes, and audited smart contracts alongside verifiable reserves.

Although there is plenty of authentic RWA work taking place throughout the ecosystem, it risks being overshadowed by excessive hype unless we enforce standards that demonstrate real adoption.

The RWA revolution does not rely on embellishment to be significant. Meaningful accomplishments might include a municipal bond issuance that saves a city money or a cross-border payment completed in seconds instead of days. Access for small businesses to previously unreachable credit markets is equally transformative.

While metrics do carry weight, surpassing $1 billion in RWAs is trivial without the ability to audit, settle, or trade those assets effectively. The next essential step is not to inflate the metrics but to cultivate trust within the ecosystem. Projects focusing on verifiability, clear regulatory frameworks, and composable yields will lead the way in RWA 2.0, finally attracting the vast institutional capital that remains on the sidelines.

With foundational transparency and accountability, the potential for RWAs will soar, unlocking trillions in institutional investments.

Opinion by: Aishwary Gupta, global head of payments and RWAs at Polygon Labs.