The first quarter of 2026 has seen a remarkable rise in the tokenization of real-world assets, excluding stablecoins, which recorded a meteoric 66% increase. By mid-March, the onchain value of these assets surged past $27 billion, driven by institutional investors’ appetite for yield and the proliferation of new blockchain infrastructure. Bitcoin’s Layer 2 protocols are emerging as formidable platforms for asset tokenization, challenging Ethereum’s previous supremacy.
How is the tokenized RWA market expanding?
The momentum within the market of tokenized real-world assets marks a significant milestone for digital finance this year. As of March 2026, tokenized Treasuries accounted for $11.3 billion, roughly 45% of the total value of tokenized assets. Meanwhile, tokenized gold and other commodities reached $6.5 billion, and investments in stocks and Treasuries grew by 38% in just the first quarter.
Investors are venturing into diverse assets such as commodities like soybeans and niche markets like AI-focused data centers. A leading digital asset researcher, Nick Research, indicated that the growth in tokenized assets is outstripping expectations. This insight is backed by HTX’s White Paper, which forecasts market expansion to a staggering $340 billion.
Are Bitcoin Layer 2s the next big thing in tokenization?
Bitcoin-powered networks are increasingly regarded as viable bases for tokenizing real-world assets. Notably, Stacks’ sBTC recently attained $292.4 million in total locked value, offering complete settlement finality and pure Bitcoin yields.
Rootstock, a Bitcoin sidechain, manages assets worth between $98 million and $160 million. The sidechain is introducing regulated vault strategies and phased tokenization methodologies. These offerings are designed to appeal to institutions prioritizing compliant digital finance solutions.
Liquid Network has distinguished itself by managing approximately $1.4 billion in tokenized RWAs, showcasing Bitcoin-native blockchains’ capability to support substantial asset token volumes outside conventional Ethereum networks.
Additionally, Solv Protocol’s value locked has surpassed the $1 billion milestone, with structured product offerings under the management of Apollo Crypto, an institutional asset manager. Solv targets lucrative annual returns on tokenized bonds and private credit, leveraging Bitcoin Layer 2 technologies.
Recent innovations on Stacks include VoltFi’s PAXG vault for gold-backed yields. The vault enables yield earning in gold without demanding accreditation or external infrastructure, enhancing accessibility for broader adoption.
Notably, Bitcoin Layer 2s have witnessed accelerated growth since 2024 as the demand for decentralized finance solutions rooted in real-world asset tokenization continues to rise.
