Private Credit Sparks $24B Increase in RWAs, Propelling Crypto Growth in 2025, Report Indicates

A recent report from RedStone underscores that private credit is a pivotal driver for growth in the market for real-world assets.

Tokenized real-world assets (RWAs) have emerged as a dominant trend in the cryptocurrency arena this year. On Thursday, RedStone published a report outlining the status of on-chain finance for the first half of 2025, highlighting that RWAs rank among the quickest-growing sectors.

As of June 2025, RWAs are estimated to be valued at over $24 billion, a significant increase from the $5 to $10 billion range recorded in 2022. This impressive growth is only exceeded by stablecoins, which have outpaced RWAs during the same period.

Marcin Kaźmierczak, Co-founder of RedStone, credits this surge in RWAs to the advent of private credit, which includes loans provided outside traditional banking systems, often directly to private firms.

“Private credit has become the cornerstone of the tokenization of real-world assets. We are currently observing institutional finance actively shifting toward blockchain— not just exploring possibilities, but also investing substantial capital and innovating through RWA looping techniques,” stated Marcin Kaźmierczak of RedStone.

The Advancement of Private Credit via RWAs

Traditionally, private credit loans were characterized by high illiquidity, conventionally featuring multi-year lock-up periods that left lenders waiting long before they could reap any rewards. However, the appealing yields, typically between 8% and 12%, made these loans attractive.

The introduction of RWAs has provided traders with the ability to sell these loans, offering substantial flexibility. Additionally, these assets can be aggregated into institutional-grade private credit funds, like Apollo’s ACRED, broadening accessibility to a more diverse investor base.

RWAs also foster the programmability and composability of assets. Institutions can now apply specific strategies, such as automatic distributions of interest or liquidations based on conditions. Moreover, tokenized assets can be leveraged across various protocols, including as collateral.

According to RedStone, this indicates that RWAs have progressed to serve practical purposes beyond the initial blockchain experiments. Non-crypto-native institutions increasingly adopt this technology to enhance their operations.