Originally published on: September 25, 2024
According to a recent report by Chainlink, the decentralized oracle provider, the global tokenized asset market is set to skyrocket to a whopping $10 trillion by 2030. This projected surge in value is driven by institutional adoption and progressive regulatory measures, despite the recent fluctuations in the cryptocurrency markets.
The report draws insights from 21.co, a blockchain-focused fintech company, as well as a collaborative study by BCG, a management consulting firm, and ADDX, a digital securities exchange.
Currently, the tokenized asset market stands at around $118.57 billion, with Ethereum leading the way by holding 58% of all tokenized assets. Chainlink’s report emphasizes that tokenizing assets has the potential to bring liquidity to traditionally illiquid assets like real estate and private equity, transforming them into digital onchain tokens.
Key factors contributing to the expected growth in the tokenized asset market include institutional interest, blockchain integration, and a conducive regulatory environment. The report points out Ethereum’s vast user base of over 6 million daily active users (DAUs) as a significant driver of market expansion.
Initiatives such as Singapore’s Monetary Authority’s (MAS) Project Guardian, which involves experimenting with blockchain-based tokenization of bonds and deposits with regulatory backing, further support this anticipated growth trend.
Despite the positive industry sentiment revealed in a survey by BNY Mellon and Celent indicating that 97% of institutional investors believe that tokenization will revolutionize asset management, challenges in audit standards, asset valuation, and regulatory compliance remain.
As the market continues to evolve, with ongoing regulatory scrutiny exemplified by lawsuits filed against crypto firms like Coinbase by the United States Securities and Exchange Commission, the path ahead for tokenized assets may still be filled with obstacles.
In conclusion, while the future of tokenized assets looks promising with the potential to disrupt a vast amount of value, the maturity of the market will depend on overcoming existing challenges and adapting to ever-changing regulatory landscapes.
