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Financial markets could drive a significant part of the sector’s growth above $10 trillion, potentially reshaping investing and asset ownership by 2030.
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The real-world asset (RWA) tokenization sector has had a breakout year in 2024, paving the way for significant growth through the end of the decade.
The RWA tokenization sector could see an over 50-fold increase by 2030, according to predictions from some of the largest financial institutions and business consulting firms compiled in a Tren Finance research report.
Most firms predict that the RWA sector could reach a market size of between $4 trillion and $30 trillion.
RWA tokenization, market size predictions by 2030. Source: Tren Finance
If the sector achieves the median prediction of around $10 trillion, it would represent more than 54-fold growth from its current value.
Real-world assets offer substantial growth potential, given that the sector is currently valued at just $185 billion, including stablecoins.
Tokenized versus untokenized market. Source: Tren Finance
RWA tokenization to capture a “significant share” of global financial markets
The RWA sector could start encompassing more of the global financial markets as the industry matures.
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This could reshape the financial markets, including how people invest, trade and own assets, according to Tren Finance’s research report, which added:
“The integration of traditional finance with blockchain technology is not just a trend, but a fundamental shift towards a more accessible, efficient, and dynamic financial ecosystem.”
Value onchain based on industries. Source: Tren Finance
However, stablecoins continue to dominate the RWA sector, accounting for over $170 billion of the market. In comparison, securities and treasuries tokenized onchain are valued at only $2.2 billion.
What makes RWA tokenization so promising?
Bringing real-world assets to the blockchain can introduce significant benefits across numerous industries, especially in the financial sector.
Tokenization can make transactions faster, cheaper and free from third-party intermediaries and geopolitical boundaries, wrote Christian Santagata, the product marketing manager at RWA protocol re.al.
Related: EU’s MiCA bill set to shape global stablecoin regulations — Binance
Continued RWA development could also lead to significant improvements in the decentralized finance (DeFi) space, added Santagata:
“DeFi innovations have already revolutionized finance, and when combined with RWA tokenization, the possibilities are endless… This unique combination enhances composability, boosts capital efficiency, and introduces new financial primitives designed for this emerging category.”
Onchain inflows into tokenized RWAs in 2024. Source: Tren Finance
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This article first appeared at Cointelegraph.com News
