The tokenized institutional alternative funds (IAFs) market has surged 47% in the past 30 days, reaching $1.74 billion as of Q2 2025.
Why it matters: This growth reflects a significant shift in institutional capital allocation, driven by the ability to tokenize real-world assets (RWAs) like private equity, venture capital, and real estate on blockchain platforms.
The details:
- Ethereum hosts over half of the market with $1 billion in total value locked (TVL) in tokenized IAFs.
- Centrifuge has captured 40.4% of the IAF market share, with its market cap growing 252% to $704 million.
- Securitize holds 37.5% of the market, managing $652 million through 14 tokenized IAFs.
- While monthly active addresses dropped by over 50% to 21,867, the number of token holders increased by 13.5% to 114,922, indicating institutional consolidation and long-term investor confidence.
Tokenized RWAs offer benefits such as faster settlement times, increased transparency, and broader investor access, facilitating the integration of blockchain technologies into traditional investment strategies.
The big picture: The broader RWA tokenization market has expanded to $25 billion in Q2 2025, with projections of $13.55 trillion by 2030, fueled by institutional demand for yield and balance sheet efficiency.
What’s next: Regulatory developments in the U.S., Singapore, and Dubai are accelerating adoption, creating opportunities for early movers to capture market share in this rapidly growing sector.
