According to the real-world (RWA) asset tokenization industry forecast, we will distribute over $30 trillion in 2030. This surge is forecasted to come from both agile and large financial institutions, which are increasingly adopting blockchain technology to start tokenizing their financial and physical assets.
Physical assets are tokenized into digital representations that can be minted on the immutable blockchain ledger or RWA tokenization. This allows for easier asset investment and broadens the opportunities for investing in traditionally illiquid assets.
Financial Institutions Are Leading The Charge
Large financial institutions are now signing on to the RWA tokenization sector. Jesse Knutson, Head of Operations for Bitfinex Securities, believes that these institutions are currently on board and will play a major role in the future of the wider cryptocurrency industry and in the RWA tokenization market itself.
Knutson said institutions moving quickly into blockchain-based tokenization efforts were one of the major contributors to this potential.
But institutions are already “pushing the boundaries of blockchain innovation,” Knutson said. “Much growth will come to the RWA sector, as that momentum spills over into the region until 2030.”
According to experts, the number of RWA tokenized companies will exceed 50 times by 2030. But big-name financial players and consulting firms estimate a $4 or $30 trillion economy for the sector, a 54-fold increase from its current market value of $185 billion, which includes the stablecoin marketplace.
Where new Venmo accounts are plentiful, RWA is not. Sticking to what they know, the sector is saturated by stablecoins, which still command $170 billion of the $1,000 billion that comprise RWA’s total as of October 2024. When it comes to tokenized securities and treasury assets, though, it’s early, providing only $2.2 billion in value. RWA Tokenization’s Trajectory has growth crypto written all over it.
One aspect of market growth is institutional adoption since Bitcoin and other cryptocurrencies have appeared online. For example, Bitcoin appreciated 116% in 2024, largely due to the first launch of U.S. spot bitcoin exchange-traded funds (ETFs).
There is another similar growth path that the RWA tokenization industry will follow as more and more get into what will end up being the same trend, says Knutson. BlackRock and many of the world’s largest asset management firms have long been betting on the success of the RWA sector and are reaping its profits. U.S. Bank is not the only major financial institution piloting its own real-world asset tokenization projects; UBS Asset Management is also undertaking a similar effort.
As more institutions join the fray, the sector will mature rapidly, and traditional financial markets will be integrated more into blockchain-based technology.
Major financial institutions have backed the RWA tokenization market. With the increasing interest in blockchain innovation, this industry is poised to be a market leader in market participation through a global financial platform by 2030. RWA tokenization’s future is bright, from the expansion of tokenized securities and the rise in institutional investments to the clarity in the regulation.
However, as the sector develops, we may see new investment opportunities and an overall marketplace uptake of blockchain in the financial space.
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