While real estate captures headlines, the tokenization revolution is unfolding across seven distinct asset classes. Private credit leads with $14 billion and 58% market share—Figure Technologies alone commands $10 billion. Treasuries follow at $7.4 billion with 539% annual growth. For allocators, the opportunity set extends far beyond property.
The Unexpected Leader
When institutional investors think of asset tokenization, most picture fractional ownership of Manhattan penthouses or Miami condos. The reality is more prosaic—and more profitable. Private credit, not real estate, dominates the tokenized landscape with $14 billion in value, representing 58% of the entire non-stablecoin market.
The leader is Figure Technologies, a company most outside specialized fintech circles have never heard of. Figure's Provenance blockchain has tokenized over $10 billion in home equity lines of credit, serving 200,000 households across 49 states. The platform didn't chase headlines; it built infrastructure and processed loans while others debated theoretical frameworks.
The yield story explains private credit's dominance. Tokenized private credit products averaged 10.16% borrower yields in mid-2025—nearly double the 5.2% available on tokenized Treasuries. For yield-hungry institutional allocators facing compressed returns across traditional fixed income, the spread is difficult to ignore.
The Seven Sectors Reshaping Allocation
Beyond private credit, six additional sectors are developing the infrastructure and liquidity that institutional deployment requires.
US Treasuries ($7.4B) experienced 539% growth from January 2024 to April 2025. BlackRock's BUIDL fund leads with $2.49 billion and 41% market share. The appeal: 24/7 settlement, programmable features, and yields tracking short-term rates at 4.1-5.2%.
Tokenized Commodities ($3B) reached record highs in October 2025, with gold-backed tokens representing 90% of the category. Pax Gold (PAXG) and Tether Gold (XAUT) together control the market, providing inflation hedging with blockchain-native liquidity.
Real Estate carries the largest projected addressable market—Deloitte forecasts $4 trillion in tokenized commercial real estate by 2035. Current deployment remains modest, but Singapore's September 2025 decision to allow on-chain REIT trading signals regulatory momentum.
Infrastructure and Energy represents an emerging category attracting ESG-focused capital. Renewable energy projects and utility tokenizations are progressing through pilot phases across multiple jurisdictions.
Securities offer the largest theoretical addressable market at $100+ trillion but face the steepest regulatory complexity. Ondo's planned Global Markets platform signals where infrastructure is heading.
Alternative Assets—art, intellectual property, carbon credits—remain nascent but growing. Carbon credit tokenization reportedly surged 400%, driven by ESG mandates and verifiable provenance tracking.
Allocation Insight: The seven sectors present distinct risk-return profiles. Private credit offers yield but requires credit analysis capabilities. Treasuries provide liquidity and safety. Real estate offers growth potential but limited current infrastructure. Successful allocators will build diversified exposure across multiple categories rather than concentrating in any single sector.
Strategic Implications for Portfolio Construction
The multi-sector landscape creates both opportunity and complexity for institutional allocators. Each asset class carries distinct regulatory requirements, platform dependencies, and liquidity profiles.
Conservative allocators typically begin with Treasuries—the clearest regulatory pathway and deepest liquidity. Private credit follows for yield enhancement, emphasizing senior positions with established platforms. Commodities provide diversification. Real estate, infrastructure, and alternatives represent longer-horizon positioning.
The strategic question isn't which single sector to prioritize. It's how to build the operational capability to evaluate and deploy across multiple categories as each matures. Organizations that develop cross-sector expertise will have optionality that single-sector specialists cannot match.
Map Your Multi-Sector Strategy
GSC provides independent analysis across all seven tokenized asset classes for institutions building diversified RWA portfolios.
Schedule a ConsultationFor the C-Suite: The 7-sector framework provides a strategic lens for RWA allocation: start with Treasuries (liquidity), add private credit (yield), layer in commodities (diversification), then position for real estate, infrastructure, and alternatives as infrastructure matures. Each sector requires distinct due diligence capabilities.