According to research by the Boston Consulting Group (BCG), the tokenization of global illiquid assets has the potential to become a $16 trillion industry by 2030, encompassing equities, bonds, investment funds, gold, silver, real estate, and other financial instruments.
The tokenization of real-world assets is expected to drive mainstream crypto adoption, according to analysts. Citi Group’s global perspectives and solutions report suggests that RWA tokenization can be a “killer use case.” The report predicts up to $4 trillion in tokenized digital securities and up to $5 trillion of central bank digital currencies (CBDCs) circulating worldwide. Kathleen Boyle, managing editor of the Citi GPS, predicted that CBDCs, tokenized assets in gaming, and blockchain-based payments on social media will drive the adoption.
“Successful adoption will be when blockchain has a billion-plus users who do not even realize they are using the technology.”
Real-world asset tokenization offers more stable yields compared to highly volatile DeFi returns influenced by crypto bull and bear cycles. Tokenized assets provide more flexible investment vehicles as a token can be used to buy a fraction of a property for those who cannot afford the whole amount. It makes traditional assets such as art, real estate, and private equity easier to trade.
There are already a number of crypto protocols dealing in real-world asset tokenization, including GoldFinch, Centrifuge, TrueFi, Maple Finance, and DeFi pioneer MakerDAO.
Maker’s ‘Endgame Plan’ proposes converting its DAI stablecoin to a free-floating asset, initially collateralized by real-world assets.
One crypto sector is estimated to reach $16 Trillion by 2030:
Real World Assets.
This will be the CATALYST for mainstream Crypto adoption.
Here’s your 2023 guide to RWAs (and the top protocols): pic.twitter.com/bGudNQX0zq
— Edgy – The DeFi Edge 🗡️ (@thedefiedge) March 30, 2023