Fragmentation across blockchain networks is costing the tokenized real-world asset (RWA) market hundreds of millions of dollars a year, according to new research from data analytics platform RWAio.

The report, created with input from 17 companies including Coinbase, Franklin Templeton, and Polygon, estimates that fragmentation across blockchains is causing between $600 million and $1.3 billion in lost value each year. Currently, the total value of tokenized real-world assets in circulation, including private credit, U.S. Treasury debt, and commodities, has reached over $36 billion.

RWAio found that the same assets often trade at different prices on different blockchains, with price gaps of 1-3%. Meanwhile, moving assets between chains can cost investors 2-5% per transaction due to fees and slippage. Ethereum currently holds 52% of all tokenized RWA value, while Polygon accounts for 62% of tokenized bonds.

To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io