Kadena's new report has identified ERC-3643 as a leading standard for compliant real-world asset tokenization.
The study points to a growing shift in market preference away from legacy models such as ERC-20 and ERC-721 in favour of newer standards that embed regulatory safeguards directly into blockchain protocols.
The report estimates that the RWA tokenization sector holds between USD 12.4 billion and USD 25 billion in total value locked (TVL) as of July 2025. Among the emerging standards, ERC-3643 has gained particular momentum, reportedly supporting over USD 32 billion in tokenised assets. Kadena attributes the adoption to features such as identity verification, permission-based transfers, and built-in compliance mechanisms.
Token standards are evolving to meet regulatory needs
According to Kadena, institutional uptake of tokenized RWAs is being driven less by speculative interest and more by a need to align with financial regulations. Representatives from the company suggest that a lack of embedded compliance remains the principal obstacle to wider institutional involvement. They argue that mechanisms such as know-your-customer (KYC) checks, investor eligibility filters, and jurisdiction-specific restrictions must be integrated at the token level to facilitate growth.
As part of its findings, the report also outlines emerging standards beyond the Ethereum ecosystem. Kadena has developed its own RWA token standard, built on its Pact smart contract language. Supported by a USD 25 million grant initiative, this standard mirrors the compliance-first approach of ERC-3643 but leverages Kadena's parallel-chain architecture, designed to enhance scalability and transaction security.
The report also considers other blockchain networks supporting RWA tokenization. Stellar, for instance, prioritises affordability and asset-specific configuration, while Algorand is focused on transaction speed and role-based asset permissions. Kadena's research suggests that a variety of approaches are emerging to suit different regulatory and operational needs.
Looking ahead, Kadena projects that the tokenized RWA market could reach between USD 2 trillion and USD 11 trillion in value by 2030. However, it acknowledges several technical and legal areas requiring further development, including cross-chain compatibility, adaptable compliance models, and better alignment with existing legal structures.
