The real world active (RWA) The tokenization market has grown by 380% in just three years and reaches $ 24 billion this month in a sign that traditional funding finds benefits of embracing Blockchain technology, according to a Redstone report, Gauntlet and Rwa.xyz.
“Asset-tokenization is decisively transferred from experimental pilots to scaled institutional adoption in 2024-2025,” the real world concluded in the on-chain financial report.
Tokenization refers to representing assets in the real world as equities and bonds such as tokens that can be purchased, sold and traded on blockchains, with the aim of reducing some of the costs and inefficiency associated with older infrastructure.
Projections for how large this market could grow to vary wildly, but many seem to involve a number multiple starting with a “T.” McKinsey predicts it will be a $ 2 trillion market, while BCG estimates $ 16 trillion by 2030.
The report from Redstone et al cites standard chartered’s projection of what is growing to approx. $ 30 trillion by 2034.
“The RWA market’s explosive growth is not only impressive numbers -that is proof that traditional funding finds real utility in blockchain infrastructure. From Blackrocks Buidl Fund of $ 2.9 billion to Apollo’s private credit tookenization, we witness the early stages of what could be the greatest capital migration in economic history,” the report said. “
While stableecoins, tokens tied to the value of a traditional financial asset, such as a Fiat currency, is typically not considered rwa-tokenization, the report claims that assets in the real world can serve a similar role.
US Treasury Secretary Scott Bessent has said stableecoins could strengthen the US dollar supremacy, a mood that may as well apply to tokenized treasuries.
“These words must be interpreted within the wider US-denomined RWA category-tokenized treasuries help directly fund government operations and manage public debt levels, while the tokenized commercial bonds and private credit strength dollar dominance by expanding USD-legislative investment opportunities in the global digital economy,” the report said.
