Tokenized Assets Surpass $38 Billion in Value as Real-World Utility Tests Begin

Tokenized assets on blockchain have surpassed $38 billion in value, according to Castle Labs' report released on May 15. The focus has shifted from merely placing assets on-chain to whether they can be actively used for trading and collateral.

Castle Labs reported that U.S. Treasuries account for over $15.9 billion (approximately 21.4 trillion won), the largest segment among tokenized assets, followed by commodities at $4.9 billion, active RWA strategies at $3.6 billion, asset-backed securities at $2.56 billion, and equities at $2.52 billion.

Tokenized assets represent traditional financial instruments like bonds, stocks, commodities, and loans converted into blockchain-based tokens. Castle Labs noted that while the initial phase focused on moving assets onto the blockchain, the next step involves enabling them to function as actual capital.

The report cited Manta Network (MNT), an Ethereum Layer 2 solution, as an example. Assets held within Manta's ecosystem exceeded $225 million, with over 60% allocated to the Manta Index Fund for Active RWA strategies. The allocation breakdown includes syrupUSDT at 21%, Temperature USDY at 15%, and xStocks at 2%.

Castle Labs highlighted that 96% of RWA value comes from income-generating assets, with xStocks (a tokenized stock product) growing to over $4.4 million since its March launch. The firm stated: 'Creating listed assets is relatively easy, but making them functional capital on-chain remains more challenging.'

For tokenized assets to gain widespread adoption, they must trade with sufficient liquidity, serve as loan collateral, and combine across multiple platforms and protocols. Failure to meet these criteria risks fragmentation of liquidity across different platforms.

Castle Labs emphasized that RWA must offer higher accessibility and composability than traditional finance to become widely adopted. The report also noted that U.S. Treasury tokenized products' on-chain market capitalization surpassed $15 billion in May 2026, indicating increasing dominance of treasury-based products in this market.