Tristero Research Warns RWA Tokenization Could Trigger ‘On-Chain
0RWA
Tokenization
RWA tokenization market faces 'liquidity paradox' warning despite $26.5B growth as researchers warn rapid expansion could trigger on-chain subprime crisis.
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Anas Hassan
Crypto Journalist
Anas Hassan
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Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.
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The tokenized real-world assets market has surged to $26.5 billion following 70% growth in 2025, yet new research warns that rapid expansion could trigger an “on-chain subprime crisis” through what analysts call the “RWA Liquidity Paradox.“
Tristero Research released a comprehensive study warning that tokenization creates dangerous mismatches between slow-moving physical assets and the hyper-fast blockchain market.
The research argues that wrapping illiquid assets, such as buildings, loans, and commodities, in liquid digital shells amplifies systemic risk rather than reducing it.
Market Growth and Trillion-Dollar Projections Defies Structural Concerns.
The warning comes as the sector experiences massive growth. RWA tokenization has expanded 245 times since 2020, growing from $85 million to the current $26.5 billion market valuation.
Private credit and U.S. Treasuries dominate nearly 90% of tokenized value, while Ethereum maintains 55% market share.
Industry projections remain bullish despite the warnings. Animoca Brands’ research suggests the sector could tap into a $400 trillion traditional finance market, while Skynet’s 2025 RWA Security Report forecasts growth to $16 trillion by 2030.
Tokenized U.S. Treasuries alone are projected to reach $4.2 billion this year.
The regulatory climate has improved significantly with the passage of the GENIUS Act, the first major crypto legislation approved by Congress.
The bill provides regulatory clarity for stablecoins and tokenization companies, allowing institutions and technology firms to operate under established frameworks.
Major players have positioned themselves strategically. BlackRock issues tokenized Treasuries, Figure Technologies has billions in private credit on-chain, and real estate deals from New Jersey to Dubai trade on decentralized exchanges.
The Liquidity Paradox Warning: 2008 Financial Crisis Might Repeat Itself.
Tristero Research’s analysis centers on fundamental structural flaws in current tokenization approaches.
The firm argues that tokenization doesn’t change asset characteristics. Office buildings, private loans, and gold bars remain slow and illiquid, despite digital wrappers that facilitate instant trading.
The research compared this to the 2008 financial crisis, when subprime mortgages were transformed into complex securities through Mortgage-Backed Securities and Collateralized Debt Obligations, creating apparent liquidity from illiquid foundations.
The mismatch between slow mortgage defaults and fast-moving derivatives amplified local problems into global shocks.
RWA tokenization risks repeating this pattern at blockchain speed. The research cited a commercial property token in New Jersey where the building’s legal transfer requires weeks of title checks and county filings. However, its digital representation trades 24/7 on decentralized exchanges.
The research outlines potential crisis scenarios. In one example, a private credit protocol with...
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