Tokenized alternative funds rocket 47% in a month, hits $1.7B milestone

Tokenized alternative funds surge has become one of the most significant developments in digital finance this month, as their market value climbed 47% in just 30 days to reach $1.74 billion, according to data from real-world asset tracker RWA.xyz.

The growth highlights how institutions are increasingly leveraging blockchain to access hedge funds, private equity, and other non-traditional assets through tokenized structures. Analysts say this surge underscores the broader appetite for real-world asset tokenization among global investors.

“Tokenized alternative funds surge reflects a clear institutional shift — it’s no longer just an experiment; it’s becoming infrastructure,” — Maria Thompson, Senior Analyst at RWA Research Group.

Centrifuge takes the lead with rapid expansion

Among issuers, Centrifuge emerged as the clear leader. Its tokenized institutional alternative funds rose 252% in market capitalization to $704 million, granting the protocol a dominant 40.4% market share.

Centrifuge’s momentum extends beyond alternative funds. The platform also manages nearly $400 million in tokenized U.S. Treasury products, pushing its total value locked (TVL) above $1 billion. This milestone places it in the same league as BlackRock’s BUIDL fund and Ondo Finance, both of which have surpassed the billion-dollar mark in real-world asset tokenization.

Securitize ranked second, managing $652 million across 14 tokenized funds, representing 37.5% of the market. Other notable players include Superstate at $206 million and OnRe at $102 million.

“The pace at which tokenized alternative funds surge is reshaping competitive dynamics. We are seeing protocols that barely existed a few years ago now commanding billion-dollar ecosystems,” — Daniel Wu, Portfolio Strategist at DeFi Capital Advisors.

Understanding tokenized alternative funds

Institutional alternative funds, traditionally managed by professionals, invest in asset classes outside conventional stocks and bonds. These include hedge funds, venture capital, private credit, and real estate.

By tokenizing these vehicles, managers bring them onto blockchains, gaining benefits such as faster settlement times, improved transparency, and access to a broader pool of investors.

The tokenized alternative funds surge demonstrates how tokenization is bridging the gap between traditional finance and decentralized networks.

Despite the strong rise in value, user activity tells a more complex story: monthly active blockchain addresses dropped by over 50% to 21,867. At the same time, the number of holders rose by 13.5% to 114,922.

Analysts suggest this may indicate institutional consolidation into fewer addresses while new investors enter the market with long-term positions.

Ethereum maintains its dominance

Ethereum remains the backbone of the market, hosting over $1 billion in tokenized institutional alternative funds — more than half of the total sector value. Competing networks are gaining traction, however. Mantle ($218.8 million) and ZKsync Era ($214.8 million) closely follow, while Solana accounts for $135.2 million. Smaller platforms like Plume ($59.2 million) and Avalanche ($41.2 million) trail further behind.

The sustained tokenized alternative funds surge on Ethereum reinforces its position as the preferred blockchain for institutional-grade assets, given its established infrastructure and liquidity.

Looking ahead, industry experts believe the growth of tokenized funds will continue to accelerate as more asset managers and traditional financial institutions embrace blockchain integration.

“Every tokenized alternative funds surge we’ve seen this year signals not just investor enthusiasm, but a structural change in how capital markets could operate in the next decade,” — Elena Park, Managing Director, Global Markets Advisory.