What if I told you the experts are wrong? Over the years, several prestigious consulting firms and financial institutions have exposed forecasts about the growth of tokenization at the end of the decade. It is interesting how between all the “expertise” varies their intervals between $ 2 trillion (McKinsey) and $ 16 trillion (BCG). Fourteen trillion dollars is a heck of a lot of spread!
Since 2017, there have been attempts to tokenize assets all over the world. Along the way, we have seen almost any asset class brought on-chain. Today, there are more than $ 50 billion in tokenized stocks, bonds and real estate, with some of the world’s largest financial institutions such as Blackrock, Franklin Templeton and Apollo begin to invest serious resources in tokenization. Add over $ 200 billion in stableecoins (or what we might call tokenized dollars) and we have a quarter of a billion dollars in rwas.
What will it look like when the faucet actually turns on? We think it seems to go from $ 250 billion today to $ 30 trillion by 2030, all thanks to the new cryptoclariness in the US
A great blessing for America and the world
Whether it is bold, the new crypto -czar, both houses in Congress or the president himself, this new administration has understood and embraced the benefits of stablecoins to further improve the dollaromin in the world.
If the US dollar is the world reserves validation for the web2 world, why not also for the web3 world? In short, the more people buying stableecoins, most of whom are in dollars, the better it is for the US
With the right attitude towards Crypto, we should see market clarity over the token classifications (an official taxonomy) and stableCOin -market structure in new legislation coming for Congress. Adopting such a bill will offer a green light for blockchain to be used in capital markets in the US previous prediction reports did not include in this new wave of clarity and state support for crypto, stableecoins and RWAs.
StableCoins and Pundcoins (Treasury-backed tokens) are set to grow significantly from their current position of $ 220 billion, potentially up to $ 3 to $ 5 trillion in 2030 if you are included in commercial adoption, digital assets growth and demand for yield on the chain.
This RWA use case has not only found the product market that suits crypto users, but it will also become a settlement solution and payment rail for capital markets in general. All assets can now trade with a new, almost instantan financial operating system using Blockchain to go in and out of any tokenized asset in the real world (RWA) or crypto asset using stableecoins.
The tokenization revolution is inevitable. Which is actually what CEOs of BlackRock and JP Morgan have openly said to say And act on.
It might anyone be tokenized, can it?
Most critics will laugh at the notion that over a hundred trillions in shares or hundreds of trillion in real estate or trillion in private companies or trillion in raw materials or trillion in bonds and credit can all be tokenized. Over the course of a few years, these critics will say that tokenization is a necessity and that it is the century’s innovation for funding (because it is).
The answer is yes, it can all be tokenized.
It is more a question of how fast each asset class benefits from migrating on the chain. Some assets will feel more pressure to adapt, while other assets are so large that it does not take much to move the needle to suddenly come to trillion either through new asset issuing, tokenized asset growth or just older assets that wander on the chain.
My conversations with banks, asset managers, crypto exchanges and industrial leaders tell me that there is a renewed spirit for active taking with the difference, that the traditional financial sector and regulators now better understand the benefits of blockchain technology, which means that the growth of asset -tokenization will happen faster than previously expected.
Here are some other reasons why our forecasts are higher than previous estimates:
When we look at some of the previous forecasts, some of them like HSBC and Northern Trust use a method that depends on calculating the size of the asset class and using a nominal percentage of the adoption or in their case an interval of 5-10% of Total assets. Others, as default, chartered refer to specific asset classes that grow faster than others, or in their case with reference to 14% of $ 30 trillion assets by 2034 comes from trade financing. STM’s methodology breaks down the eight largest asset classes in the world and considers regulatory and government support as a key factor for growth. Imagine if California’s title register went on the chain. It’s a $ 10 trillion housing market that could be put on a blockchain almost overnight. Thanks to the new market clarity in the US and success with stableecoins, we expect faster Blockchain -Reconciliation around the world, leading to $ 50 trillion in RWA annual trade by the end of the decade.
It’s time to open the faucet. Happy tokenizing!
See the full report here.
