The tokenization of real-world assets (RWA) is expected to surpass $30 trillion by 2030, driven primarily by both agile and established financial institutions.
Financial Institutions Pioneering RWA Tokenization Growth
RWA tokenization involves minting tangible and financial assets on a blockchain ledger, enabling broader investor access and increasing trading opportunities. Experts predict this industry could grow over 50-fold in the next few years, with mainstream financial institutions playing a pivotal role in this expansion.
Jesse Knutson, head of operations at Bitfinex Securities, highlighted the role of institutions in the sector’s growth. Speaking to Cointelegraph at Plan B Lugano, Knutson emphasized that early growth is being driven by nimble players like family offices. However, the long-term benefits of tokenization are likely to attract larger institutional investors.
Global financial institutions and consulting firms project the RWA sector to grow significantly, with predictions suggesting a market size between $4 trillion and $30 trillion by 2030.
A Multi-Trillion-Dollar Opportunity
If the RWA sector achieves the median forecast of around $10 trillion by 2030, it would reflect more than 54 times its current market value of approximately $185 billion, as reported by Tren Finance. Currently, the stablecoin market dominates the RWA sector, accounting for over $170 billion, while tokenized securities and treasuries make up $2.2 billion.
Following the Crypto Market’s Trajectory
The RWA tokenization industry is expected to mirror the crypto market’s growth trajectory. This year, Bitcoin experienced a significant surge, climbing over 116% year-to-date, bolstered by the approval of the first spot Bitcoin ETFs in the United States. Similarly, Knutson believes the RWA market will follow a similar evolutionary path, driven by increasing institutional interest.
Major players such as BlackRock and UBS Asset Management are already placing bets on the sector, with some piloting tokenization projects. This growing institutional confidence underscores the RWA tokenization industry’s potential to revolutionize asset trading and investment.
