The tokenized RWA market has reached $36 billion with projections ranging from $3.5 trillion (conservative) to $10 trillion (bullish) by 2030. This guide provides institutional investors with a structured framework covering seven asset classes, platform evaluation criteria, regulatory considerations, and portfolio construction approaches based on analysis of 50+ platforms and $25 billion in institutional deployments.
Classes
Selection
Framework
Diligence
Allocation
Framework
The Investment Landscape
Institutional investors approaching tokenized assets face a paradox of abundance. The opportunity is clear—BlackRock's BUIDL fund grew to $2.49 billion; Goldman processes $4 trillion through Canton Network; Figure has tokenized $10 billion in private credit. But the landscape sprawls across seven asset classes, dozens of platforms, and regulatory frameworks that vary by jurisdiction. Without a structured approach, the complexity becomes paralyzing.
This guide distills the institutional playbook that's emerging from early adopters. It's not theoretical—it reflects actual deployment patterns from organizations that have moved beyond experimentation to meaningful allocation. The framework addresses three questions every CIO must answer: what to buy, where to buy it, and how much to allocate.
The Seven Asset Classes
Tokenized assets span seven categories, each with distinct risk-return profiles and infrastructure maturity. Understanding these differences is essential for portfolio construction.
Private Credit ($14B) dominates with 58% market share. Figure Technologies leads with $10B in tokenized HELOCs. Yields average 10.16%—nearly double Treasury rates. The category offers the highest returns but requires credit analysis capability.
US Treasuries ($7.4B) represent the safest entry point. BlackRock BUIDL ($2.49B) and Franklin Templeton FOBXX ($512M) lead. Yields track Fed funds at 4.1-5.2%. The category offers maximum liquidity and regulatory clarity.
Commodities ($3B) provide inflation hedging. Gold-backed tokens (PAXG, XAUT) dominate with 90% share. Returns track underlying commodity prices with blockchain-native liquidity.
Real Estate, Infrastructure, Securities, and Alternatives represent emerging categories with smaller current markets but significant growth potential. Each requires specialized due diligence approaches.
Framework Insight: The seven categories should be viewed as a progression. Most institutions start with Treasuries (liquidity, regulatory clarity), add private credit (yield), layer in commodities (diversification), then position for emerging categories. Attempting to deploy across all seven simultaneously creates operational complexity that undermines returns.
Platform Selection Framework
Platform choice often matters more than asset selection. The evaluation framework covers four dimensions:
Regulatory Status: Is the platform registered with relevant authorities? Securitize holds SEC registration as both transfer agent and ATS. Many others operate in regulatory gray zones that create counterparty risk.
Custody Arrangements: Who holds the underlying assets? How is key management handled? What insurance coverage exists? These questions determine recovery options if problems emerge.
Track Record: How much volume has the platform processed? What happened during market stress? Platforms with billions in transaction history provide evidence that newer entrants cannot.
Technology Architecture: Has the smart contract code been audited? By whom? What's the security incident history? Technology risk is real and must be evaluated systematically.
| Feature | Securitize $3.6B AUM | Ondo Finance $1.2B AUM | Figure $10B+ Loans |
|---|---|---|---|
| Primary Focus | Securities tokenization | Treasury products | Private credit |
| Regulatory Status | SEC-registered ATS + Transfer Agent | SEC-registered | SEC-registered |
| Institutional Clients | BlackRock, Hamilton Lane, KKR | DeFi protocols, DAOs | Banks, credit unions |
| Asset Types | Funds, bonds, equity | Treasuries, money markets | HELOCs, mortgages |
| Blockchain | Ethereum, Polygon, Avalanche | Ethereum, Solana | Provenance (proprietary) |
| Minimum Investment | $500 - $100K (varies) | $500+ | Institutional only |
| Yield Range | 4-8% (fund dependent) | 4.5-5.2% (Treasury-linked) | 8-12% (credit risk) |
| Best For | Institutional diversification | Treasury yield access | Credit-focused allocators |
Portfolio Construction
Allocation frameworks depend on organizational risk tolerance and existing portfolio composition. A typical progression:
Conservative (1-5%): 100% tokenized Treasuries. Primary objective is operational learning with minimal risk. Suitable for organizations just beginning tokenization journey.
Moderate (5-15%): 50% Treasuries, 40% private credit, 10% commodities. Begins capturing yield while maintaining significant liquidity. Requires credit analysis capability.
Aggressive (15-25%): 30% Treasuries, 35% private credit, 15% commodities, 20% real estate/infrastructure. Full diversification across mature categories. Requires dedicated operational infrastructure.
Build Your RWA Investment Framework
GSC provides customized portfolio construction and platform evaluation for institutions developing tokenization strategy.
Schedule a ConsultationFor the C-Suite: The institutional playbook is clear: start conservative, build operational capability, expand systematically. Organizations attempting to shortcut this progression—deploying significant capital before developing internal expertise—create risks their governance structures may not fully understand. The market will be there; the question is whether your organization will be ready.