JPMorgan calls out RWA tokenization with a $25B reality check

Key Points

1. JPMorgan's report reveals RWA tokenization has a market cap of only $25B, far below earlier expectations, with traditional finance (TradFi) interest declining.

2. Crypto-native firms are currently driving most of the RWA tokenization activity, as TradFi enthusiasm wanes, exemplified by BlackRock's BUIDL fund losing $0.6B in assets between May and August.

3. Regulators, such as South Korea's Financial Intelligence Unit, are intensifying scrutiny on stablecoins, launching a year-long anti-money laundering review with a 50-million-won budget running through December 2025.

4. The study aims to benchmark stablecoin regulations against global standards to address legal gaps, signaling upcoming tougher oversight for the sector.