Boston Consulting Group (BCG) projects that real-world asset (RWA) tokenization could seize 1% of the global mutual fund and ETF market within seven years. Calling it the “third revolution in asset management,” BCG estimates tokenized assets could grow to $600 billion by 2030, driven by enhanced blockchain adoption.
Growing Investor Demand Fuels Expansion of Tokenized Funds
In collaboration with Aptos Labs and Invesco, BCG noted increasing investor interest in tokenized funds. According to Managing Director David Chan, the RWA tokenization market could expand by up to 50 times by the end of the decade, largely due to rising regulatory support for on-chain assets, including stablecoins, tokenized deposits, and central bank digital currencies (CBDCs).
State Street Global Advisors released a report highlighting the bond market as particularly suitable for tokenization, citing the benefits of automating bond issuance and management through smart contracts. Such innovations could improve efficiency in high-velocity markets like repos and swaps, where blockchain could reduce transaction costs.
Private Equity and Real Estate See Tokenization Opportunities
While public equities face fewer incentives for tokenization, private equity and real estate are viewed as promising candidates. However, complex regulatory and infrastructure needs present challenges to broader tokenization adoption for these assets.
Sector Growth Despite Early-Stage Adoption of Tokenized RWAs
According to the Financial Stability Board, while tokenized RWA adoption remains in its early stages, the sector has grown steadily to $13.25 billion, a 60% increase this year. Tren Finance and Citigroup forecast that the tokenized asset market could reach $5 trillion by 2030.
Institutional Players Enter Tokenization with New Initiatives
Industry leaders like Goldman Sachs are actively entering the tokenization market, with plans to launch three new tokenization products by year-end. These moves underscore the firm’s commitment to meeting rising client demand in the evolving RWA tokenization landscape.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
