Private Credit Fuels Crypto Boom: RWAs Surge to $24B in 2025’s Breakout Rally

Wall Street's sleeping giant just got a blockchain alarm clock. Real-world assets (RWAs) have officially cracked the $24 billion mark—with private credit leading the charge in crypto's 2025 growth spurt.

The yield-hungry invasion

Traditional finance refugees are piling into tokenized debt like it's a BlackRock ETF fire sale. Who needs 4% Treasury bonds when decentralized lenders offer double-digit APY? (Just don't ask about that one bridge hack last quarter.)

Collateral damage

The RWA narrative flipped from 'niche experiment' to 'institutional darling' faster than a memecoin rug pull. Credit protocols now hold more real estate deeds and yacht liens than some regional banks.

As the suits finally realize blockchain does more than ape JPEGs, the real question remains: Will they still wear loafers to the DAO meetings?

How RWAs change private credit

Private credit loans were traditionally very illiquid, often subject to multi-year lockups. This meant lenders had to wait a long time to realize a profit. Still, their high yields, typically 8% to 12%, made them worthwhile.

With RWAs, traders can sell these loans, giving them significantly more flexibility. In addition, these assets can be packaged into institutional-grade private credit funds, such as Apollo’s ACRED, making private credit more accessible to a broader range of investors.

RWAs also make these assets programmable and composable. Institutions can now embed specific strategies, including automatic interest distribution or triggered liquidations. At the same time, tokenized assets can be integrated across various protocols, including as collateral.

According to RedStone, this indicates that RWAs have matured for real-world applications—beyond early experiments with blockchain technology. Non-crypto-native institutions are now leveraging the technology to enhance their operations.