JPMorgan: "Traditional Financial Institutions Losing Interest in the RWA Market"

An analysis has emerged suggesting that the tokenization market for real-world assets (RWA) is failing to gain significant traction among traditional financial institutions.

According to BeInCrypto on the 7th (local time), JPMorgan stated in a report, "The current RWA tokenization market is valued at approximately $25 billion, of which $15 billion is concentrated in tokenized private loans held by a few select firms."

Currently, BlackRock’s RWA fund 'BUIDL' has seen its assets under management decrease by $600 million from May through August. JPMorgan assessed that while traditional financial institutions participated in the RWA market experimentally, they are now gradually losing interest.

Eric Balchunas, a Bloomberg ETF analyst, noted, "The value proposition of ETFs is so strong that, despite a decade of tokenization efforts, ETFs have remained unaffected," adding, "If Wall Street truly saw RWAs as the next big thing, we wouldn't be seeing record-breaking launches of ETFs every year." He further commented, "I do not agree with claims that the heyday of RWA tokenization is yet to come," and assessed, "On the contrary, it may be near its final stage."