Tokenized RWA Market Hits $51B; rsETH Restored, Crypto PACs Active

Bernstein Research found the tokenized real-world asset market reached $51 billion, a 42% year-to-date increase. Tokenized private credit accounted for about 44% of the total and was the main driver of growth.

Figure Technology Solutions ranked first among tokenized platforms with roughly $18 billion, largely tied to private credit. Institutional products appeared in the market as well: BlackRock’s tokenized money market fund BUIDL surpassed $2.5 billion in assets. Bernstein noted its $51 billion total exceeds some other industry estimates because providers use different methods to count tokenized holdings.

Tokenized private credit records loans on blockchain networks rather than on traditional bank ledgers. These loans are typically issued outside banks, with investors providing funding in exchange for interest and tokenized ownership exposure.

Kelp DAO completed the operational phase of its recovery for rsETH after an April 18 exploit removed $293 million from the protocol. The final tranche of 20,373.7 rsETH was sent to the LayerZero smart contract that handles cross-chain locking, minting, burning and releasing of the token. “This closes the operational part of the rsETH recovery plan,” the DAO wrote.

Earlier recovery steps included a first tranche of 25,000 rsETH transferred on May 13, which reopened bridging between the Ethereum mainnet and layer-2 networks. Withdrawals resumed the following day. Multiple protocols contributed funds under the DeFi United initiative to restore rsETH’s backing, and Kelp reported that minting, redemption and reward processes “have been running normally.”

Political action committees aligned with the crypto industry spent millions on two Texas runoff races held Tuesday. In the Democratic runoff for the 18th congressional district, Protect Progress reported $5 million supporting challenger Christian Menefee and $2.8 million on ads opposing incumbent Al Green. The Blockchain Leadership Fund endorsed Menefee but had not reported expenditures.

The statewide Republican runoff for U.S. Senate matched Attorney General Ken Paxton against incumbent John Cornyn. Industry-aligned spending in both contests was concentrated on advertising and media buys ahead of the November general election.

Bernstein’s market estimate covers activity through the current year to date; the rsETH recovery completed in late May; the Texas runoffs took place on Tuesday.