Blockchain Asset New Trends: Analysis of Yield-Generating RWA Market

There are various types of real-world assets on the Blockchain, serving different use cases. This article will outline the following main types of income-generating RWA:

• Real Estate
• Private Credit
• National Debt

Note: This analysis focuses on these tokenized assets and their market capitalization, excluding information related to underlying protocols or auxiliary services. To avoid obscuring the growth of other smaller RWAs, the report does not cover stablecoins.

( A bridge between the real and digital worlds

RWA is created by the issuer through one or more of the following activities:

• Acquire real-world assets
• Tokenize assets on the Blockchain
• Distributing RWA tokens to on-chain users

Some main RWA issuers include:

• Centrifuge - The largest on-chain private credit issuer
• Franklin Templeton - Traditional financial institution issuing tokenized government bonds
• Wisdom Tree - Capital market institution issuing government bond tracking funds

These issuers demonstrate how off-chain entities provide backing for on-chain RWA. Traditional financial companies like Franklin Templeton and WisdomTree entering the RWA market are expected to attract a large number of new users into the cryptocurrency space.

![Yield-bearing RWA Report: US Treasuries Drive Revenue Growth, Surge in Demand from Crypto Native Users])https://img-cdn.gateio.im/webp-social/moments-a1269c49e185e79601956994f6883134.webp###

( Yield-bearing RWA market growth

As of the end of September, the market value of RWA reached 2.49 billion USD, a decrease of 9.6% from the peak of 2.75 billion USD set in April. In the first three quarters of this year, the value of non-stablecoin RWA grew by 1.05 billion USD, of which 855.7 million USD came from government bonds, real estate, and private credit.

![Yield-type RWA Report: US Treasury Bonds Drive Revenue Growth, Surge in Demand from Crypto Native Users])https://img-cdn.gateio.im/webp-social/moments-372ec61e0aba15ad359d9a8760f35af7.webp###

(# Private Lending

Private lending is a form of financing provided by non-bank institutions. On-chain private lending grew by $210.5 million in the first three quarters of this year, an increase of 184% from ). Centrifuge contributed the largest growth, with an outstanding loan balance increasing by $155.7 million. The Clearpool platform experienced the fastest growth, with loan balances increasing by 966% to $23.96 million.

![Yield-type RWA Report: US Treasuries Drive Yield Growth, Surge in Demand from Crypto Native Users]###https://img-cdn.gateio.im/webp-social/moments-2fd503e18fc84000f3dfc5aba608fefc.webp(

On-chain private lending yields are significantly higher than those of DeFi lending protocols. Since the beginning of this year, the average daily interest rate spread between the two is 7.7%. However, private lending loans may not have over-collateralization, and the risk conditions vary.

![Yield-generating RWA Report: US Bonds Drive Growth in Returns, Surge in Demand from Crypto-native Users])https://img-cdn.gateio.im/webp-social/moments-2ca56c1264c5a021135f06756ad7951c.webp(

)# Real Estate

Real estate is the largest asset class in the world, valued at approximately $613 trillion. On-chain real estate assets grew by $178 million this year. RealT is the largest issuer, holding 49% market share. Tangible is the fastest-growing this year, increasing from $100,000 to $64 million.

Government bonds and other bonds

Tokenized government bonds and bonds grew by $557.05 million this year. Ondo Finance, Franklin Templeton, and Matrixdock are the three major issuers, collectively issuing $572.05 million in assets, accounting for 85% of this category.

The average yield on government bonds is 3% higher than the on-chain stablecoin interest rate this year. In comparison, the yield on AAA-rated corporate bonds is 2.7% higher.

![Yield RWA Report: US Bonds Drive Yield Growth, Surge in Demand from Native Crypto Users]###https://img-cdn.gateio.im/webp-social/moments-fa5c52d5513600a150d273ee7240b901.webp(

) Outlook

The demand for returns from native crypto users has driven the growth of on-chain RWA. This year, 82% of the newly added RWA value comes from yield-bearing assets. The proportion of yield-bearing assets in the total RWA market value has increased from 31% at the beginning of the year to 53%.

Most RWA users are crypto-native users rather than newcomers. The average age of addresses holding RWA is 882 days, significantly higher than the average age of RWA assets at 375 days. 20% of RWA user addresses began on-chain trading before 2019.

![Yield-generating RWA Report: US Treasuries Drive Income Growth, Surge in Demand from Crypto Native Users]###https://img-cdn.gateio.im/webp-social/moments-25ef986c17448071bb84e55bfd6d21c5.webp(

However, RWA issued by traditional financial companies such as Franklin Templeton and WisdomTree are attracting new users into the crypto space. 34% of the user addresses for these assets were created less than a year ago.

![Yield-bearing RWA Report: US Bonds Drive Revenue Growth, Surge in Demand from Native Crypto Users])https://img-cdn.gateio.im/webp-social/moments-d81bdd43c704bc3a7a4744f794eb126e.webp(

RWA has risks and limitations in the real world. Users often need to complete KYC/AML or whitelist verification to interact with RWA. RWA does not expand the accessibility of financial instruments.

![Yield RWA Report: US Treasury Drives Revenue Growth, Surge in Demand from Crypto Native Users])https://img-cdn.gateio.im/webp-social/moments-1080ba9b3184fb8dbeb90ad92d5df57a.webp(

The Federal Reserve's policy is a key factor influencing the development of RWA. As interest rates rise, the share of government bond-backed RWA increases from 0 to 27%, while the share of private credit-backed RWA decreases from 56% to 18%.

![Yield RWA Report: US Bonds Drive Yield Growth, Surge in Demand from Crypto Native Users])https://img-cdn.gateio.im/webp-social/moments-066502afd1344a2735ead2052ff5eb97.webp(

Overall, the RWA growth momentum is strong, and the market capitalization is approaching new highs. Changes in the macro environment and user demand will continue to drive the development of this field.

![Yield-generating RWA Report: US Treasuries Drive Earnings Growth, Demand from Crypto Native Users Surges])https://img-cdn.gateio.im/webp-social/moments-2439ab12ce624984ca655de307da4107.webp(

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