Introduction

Tokenization was once considered the holy grail of blockchain technology, offering borderless markets, 24/7 availability, fractional ownership, instant settlement, and enhanced capital efficiency for real-world assets. However, early institutional adoption was stifled by regulatory uncertainty and aggressive enforcement actions under former SEC Chair Gary Gensler, delaying innovation for years. Today, the environment is markedly different under the new administration. Real-world asset (RWA) adoption accelerated throughout 2024 and 2025. BlackRock’s BUIDL fund, a tokenized money market product, grew by 224.5% in March 2025 alone, adding $1.283 billion in assets. In Larry Fink annual letter to BlackRock shareholders, he emphasized the transformative potential of tokenization, stating, "Every stock, every bond, every fund — every asset — can be tokenized. If they are, it will revolutionize investing". Momentum is building across the industry. Fidelity has filed with the SEC to launch a tokenized US Treasury Fund on Ethereum, expected to go live on May 30. Broader sector forecasts are bullish. Sector mindshare data from Kaito also shows RWA and stablecoins as the one of the fastest growing narratives in crypto.

While crypto veterans are familiar with early RWA protocols like Centrifuge, Maple, and Goldfinch, this article focuses on a new generation of specialized RWA Layer-1 blockchains. These include Mantra, Plume, Ondo Chain, Chintai, Converge (a collaboration between Ethena and Securitize), Clearpool’s Ozeon, RedBelly, and Polymesh. Although these projects share the overarching goal of bringing off-chain assets on-chain, they differ meaningfully in architecture, strategic partnerships, and regulatory approaches. This report examines the design features of these RWA Layer-1s, analyzes a recent token collapse case study, and outlines frameworks for valuing their native tokens based on available market metrics.

Collapse Case Study of The Largest RWA Protocol

Mantra's OM Token Price from January 2025

It is impossible to discuss RWA Layer-1s without mentioning Mantra. After Mantra's OM token surged more than 10,000% from 2024 to March 2025 and reached a peak fully diluted valuation (FDV) of $15 billion, it suffered a dramatic collapse that erased over $5 billion in value within hours in April 2025. On April 13, OM plunged by approximately 90%, falling from around $6.32 to $0.49, reportedly due to "massive forced liquidations" of large holders on low-liquidity exchanges, according to Mantra’s co-founder.

Although the exact cause of the crash remains debatable, trading data provides some clues. Before the crash, OM’s average daily trading volume was less than $200,000 despite having an FDV close to $10 billion. This liquidity was extremely thin compared to assets like Chainlink and Avalanche, which had similar FDVs but much higher average daily trading volumes of $800 million and $400 million, respectively. Some investigators also pointed to concerns about the team’s background, noting connections to previous fraudulent ICOs, which raised additional questions about the team's credibility.

In response to the incident, the Mantra team proposed burning 300 million OM tokens, representing 16.5% of the total supply, as an effort to restore investor confidence. However, rebuilding trust after such a massive blow is a challenging task. The Mantra episode highlights a critical lesson for investors: high nominal valuations and high-profile partnerships mean little without sufficient market depth and liquidity.

Why a New Layer-1: Plume Network

Plume Testnet Number of Accounts

A common question is why not simply issue RWA tokens on Ethereum or other existing chains. In practice, delivering a seamless RWA user experience requires capabilities beyond what a generic blockchain offers.

First, compliance forms the foundational layer for any RWA-focused Layer-1. Platforms dealing with securities must enforce KYC and AML measures, investor accreditation, transfer restrictions, and maintain audited reserves. These “trust and eligibility” requirements are difficult to bolt on afterward. Although Ethereum’s ERC-3643 token standard introduces identity checks and transfer controls, a dedicated Layer-1 can extend compliance enforcement to every contract and transaction across the network.

For example, Plume Protocol’s Plume Arc architecture allows users to choose their identity verification provider, including Persona, Sumsub, Gateway, and Ankr Verify, to issue cryptographic KYC proofs using zero-knowledge or fully homomorphic encryption (FHE) technology. This framework lets users carry their KYC proofs across multiple dApps without undergoing repeated manual verifications. Plume Arc also offers modular services, including tokenization partners, issuers, on/off ramps, AML compliance services, and Alternative Trading System (ATS) partners, significantly improving the tokenization experience for institutions and investors.

An embedded enforce compliance standards make RWA Layer-1 suboptimal for regulated RWA use cases. However, we could not downplay the possibility of general modular compliance standards adopted by existing blockchain which could undermine the existence of RWA Layer-1s.

Second, RWAs depend heavily on off-chain data such as legal documents, asset prices, and registries. Plume Nexus addresses this by bridging off-chain data onto the blockchain with low latency, powered by leading data providers.

Third, RWA Layer-1s aim to onboard audiences beyond native crypto users. Since web3 wallets are the primary interface for user interaction, Plume Passport, a smart wallet, gives users full control of their RWA holdings without relying on third-party custodians. It also enables gasless transactions and consolidates asset management into a single, user-friendly interface.

Fourth, RWA tokens often suffer from liquidity shortages in crypto markets. Plume introduces pUSD, a stablecoin backed by a basket of trusted stablecoins and adopted across multiple dApps in the ecosystem. pUSD ensures deep liquidity, robust price stability, and stronger user confidence as the primary transactional asset.

Fifth, Plume Layer-1 is EVM-compatible, allowing developers to onboard with minimal adjustments and enabling seamless integration with the broader EVM ecosystem. Additionally, Plume Skylink facilitates cross-chain interoperability across 18 blockchain networks, streaming yields directly to users' wallets on other networks.

Finally, regulatory clarity around tokenized assets is advancing rapidly. Blockchains that proactively align with regulatory expectations are best positioned to capture first-mover advantages. While Plume is still pending major licenses, its comprehensive infrastructure lays the groundwork for success once approvals are secured.

Differentiation Among Other Layer-1s:

RWA Social Volume by RWA.io

All RWA Layer-1 projects share the overarching goal of bringing RWA on-chain. They aim to embed compliance measures, bridge off-chain data, enable low-latency transactions, and aggregate deeper liquidity for RWA assets across their respective networks. However, their approaches and product focuses differ in key ways.

Mantra, for example, offers a DID module that issues a digital identity as a soulbound NFT after users complete KYC verification through a regulated entity authorized in the relevant jurisdiction. Ondo Chain introduces the concept of enshrined Proof of Reserves and Proof of Collateral, fostering greater confidence that every RWA token is fully backed. This structure also enables the development of more sophisticated and capital-efficient on-chain financial instruments. Chintai provides white-label services that allow businesses to brand and customize the platform to their specific needs, including modifying the user interface, setting trading rules and fees, managing user accounts, allocating permissions, and utilizing proprietary automated compliance engines such as Sentinel AI.

Each chain’s compliance strategy also differs significantly. Mantra has secured a Virtual Asset Service Provider (VASP) license from VARA in Dubai, allowing it to operate a virtual asset exchange, provide broker-dealer services, and offer management and investment services across the UAE and MENA region. Chintai holds Capital Markets Services (CMS) and Recognized Market Operator (RMO) licenses from the Monetary Authority of Singapore (MAS), enabling it to deal in tokenized securities and operate a trading platform. Clearpool has secured FINRA broker-dealer registration and authorization to operate a Multilateral Trading Facility (MTF) from the UK's Financial Conduct Authority (FCA).

Total Value Signed

Total RWA Value On-Chain by RWA.xyz

Many RWA-focused Layer 1 blockchains are still at an early stage of development. In fact, about half of the protocols discussed here have not yet launched on the mainnet. As a result, traditional metrics such as gas consumption, active addresses, and total value locked (TVL) are not applicable for evaluating these projects. To gauge the potential of these Layer 1 chains, we can look at the agreements announced by their respective protocols, which specify the value of assets they plan to onboard, a metric we might term "total value signed". However, it is important to approach these figures cautiously. For example, Redbelly announced a partnership to tokenize $70 billion worth of carbon credits from CarbonHood, a figure that, while impressive, should be viewed with prudent skepticism until fully realized.

By analyzing these onboarding agreements, we can also identify the key asset classes each Layer 1 is targeting. For instance, Mantra, Chintai, and Polymesh are heavily focused on real estate tokenization, a market that Deloitte’s Center for Financial Services estimates could grow to $4 trillion by 2035. Meanwhile, others are concentrating on tokenizing securities and investment funds, which we believe may achieve mass adoption more quickly. Notably, Plume has established a large number of partnerships, predominantly focused on credit tokenization. In addition, Ondo’s General Markets (GM) is expected to launch on Ondo Chain, potentially enabling on-chain trading of tokenized equities in the multi-trillion dollar public markets, a significant milestone. While some protocols like Ondo, Converge, and Clearpool may not have signed onboarding agreements with headline-grabbing figures, they already have substantial tokenized assets live on-chain. For example,

Ondo currently holds over $1 billion in tokenized treasuries,
Converge has over $4.7 billion in USDe and $1.4 billion in tokenized treasuries (USDtb),
Securitize has over $4 billion worth of tokenised RWA, and
Clearpool maintains around $23 million in active loans with a TVL of approximately $74 million (or $51 million excluding CPOOL staking).

These existing assets provide a strong foundation for these protocols to build and expand their new blockchain ecosystems.

RWA Token Evaluation

RWA Layer-1 Comparison

The token utilities across these projects are largely similar (acting as governance, gas and staking token), as each operates its own blockchain. However, there are important differences. For instance, Clearpool’s Ozeon and Converge tokens are not used for transaction fees because their respective stablecoins, USDX and USDe, are used as gas tokens. All tokens, however, are used as staking assets to secure their networks. Additionally, CHEX can be staked in a USD liquidity pair to earn extra rewards from on-chain trading activities.

Chintai has implemented a buyback and burn policy for CHEX, allocating 5% of the platform's generated value toward reducing token supply. Clearpool has a similar mechanism, using 50% of protocol revenue for CPOOL buybacks and burns. Plume benefits from a strong partnership network, but it faces challenges with a low circulating supply and significant inflation pressure from upcoming token unlocks. Mantra’s OM token offers additional yield opportunities through initiatives such as stakedrops, which are airdrops from protocols launching on the Mantra chain. Ondo currently has the highest FDV among RWA-focused Layer-1 blockchains. The team is highly ambitious, but if they successfully execute their vision of tokenising securities (particularly tokenised stocks), the FDV could have more room to grow.

Overall, the RWA Layer-1 sector remains at an early stage. Protocols need to continue delivering and maintaining relevance to secure long-term growth. Polymesh, one of the first RWA Layer-1 projects, onboard Binance as a validator but has struggled to stay relevant with the community. This is reflected in its FDV performance. Today, Mantra, Plume, and Ondo command the highest mindshare among RWA Layer-1 projects by a wide margin. This "narrative premium" can temporarily boost valuations. Although Ethena has already achieved relatively strong mindshare at 0.27%, it is likely only a matter of time before community attention shifts increasingly toward Converge. Meanwhile, Clearpool appears to have a relatively fair valuation, supported by strong sentiment ratios, low expected inflation, and an established TVL of $77 million and cumulative loan originations totaling $784 million.

Conclusion

All RWA Layer-1 projects are still in the very early stages. They must continue delivering and stay up-to-date with evolving regulations to position themselves advantageously once regulatory clarity emerges. Ondo, for example, has already engaged with the SEC’s crypto task force to propose solutions for moving tokenized securities on-chain. This is a critical development, as early movers in this space will likely enjoy a significant first-mover advantage with deep liquidity layer. As investors, it is important to continue monitoring RWA Layer-1s after their mainnet launches to gain firsthand insight into network adoption. Announcements of major partnerships are promising, but it is essential to assess the depth of these partners' commitments. Strong projects must also come with fair valuations to offer meaningful returns on token investments. Understanding when to take profits and when to stay committed is key.

RWA Layer-1s are likely to offer a relatively safer way to gain exposure to the RWA sector. Following the FAT protocol thesis, Layer-1 chains will naturally benefit from the growth and success of the dApps built on top of them. According to BCG, the RWA market is projected to reach $16 trillion by 2030, or 63.72% CAGR. The RWA sector is expected to expand rapidly in 2025, and the momentum behind this growth is undeniable.

References

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