The future of finance is going digital.
Chainlink, a leading decentralized oracle provider, has projected that the global tokenized asset market could surge to $10 trillion by 2030.
The report highlights the significant role institutional interest and evolving regulations play in pushing this sector forward, even amidst the volatility seen in cryptocurrency markets.
Drawing on insights from a report by 21.co, a blockchain fintech firm, as well as a joint study from BCG and digital securities exchange ADDX, Chainlink emphasizes that tokenized assets are gaining serious momentum. The BCG-ADDX study even estimates that the tokenized market could grow to as much as $16 trillion by 2030.
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As of now, the value of tokenized assets stands at approximately $118.57 billion, with Ethereum dominating 58% of the market.
The tokenization of traditionally illiquid assets, like real estate and private equity, is one of the key factors driving this growth, transforming them into more accessible digital tokens.
This tokenization not only enhances accessibility but also streamlines institutions’ financial processes.
Key Drivers of Market Growth:
Several factors fuel this market expansion:
- Institutional adoption: A survey from BNY Mellon and Celent shows that 97% of institutional investors believe tokenization will revolutionize asset management.
- Blockchain integration: Ethereum’s robust network of over 6 million daily active users is a pivotal force behind this surge.
- Regulatory support: Initiatives like Singapore’s Project Guardian, which pilots tokenization of bonds and deposits, highlight the critical role of regulatory bodies.
Despite the promising outlook, challenges remain. Audit standards, asset valuation complexities, and regulatory compliance hurdles still need to be addressed. Moreover, ongoing legal challenges, such as those faced by firms like Coinbase with the U.S. SEC, could affect the road ahead.
However, with $867 trillion worth of assets primed for tokenization, the market’s potential is undeniably massive.
