The market for tokenized financial instruments or assets in the real world (RWAS) could reach $ 18.9 trillion by 2033, as the growth of technology is approaching a “rocking point” according to a joint report Monday by Boston Consulting Group (BCG) at paying-focused digital active infrastructure company.

That would mean an average of 53% composed annual growth speed (CAGR), which takes the middle ground between the report’s conservative scenario of $ 12 trillion in tokenized assets in the next eight years and a more optimistic $ 23.4 trillion projection.

Tokenization is the process of using blockchain rails to detect ownership and move assets – security, raw materials, real estate. It is a red -hot sector in crypto, where several global traditional financial companies are pursuing tokenization to achieve efficiency gains, faster and cheaper settlements and around the clock transactions. JPMorgan’s Kinexys platform has already treated more than $ 1.5 trillion in tokenized transactions with over $ 2 billion in the daily volume. Blackrock’s Tokenized US Dollar Money Market Fund (BUIDL) issued with Tokenization Company Securitize is approaching $ 2 billion in assets under management and is increasingly used in decentralized funding (DEFI).

“[The] Technology is clear, regulation is evolving, and basic use cases are on the market, ”said Martijn Siebrand, digital asset program manager at ABN Amro, in the report.

The report highlighted tokenized government bonds, US Treasury, as an early success, allowing corporate taxes that are seamlessly switching available cash to tokenized short -term government bonds from digital wallets without any intermediaries who control liquidity in real time and around the clock.

Private Credit is another sector that draws attention to open access to traditionally opaque and illiquid markets while offering investors clearer prices and fraction ownership. Similarly, carbon markets are marked as fruitful grounds where blockchain-based registers could increase the transparency and traceability of emission credits.

The main challenges still dwell

Despite the growth, the report identified five key barriers to broader adoption: fragmented infrastructure, limited interoperability across platforms, uneven regulatory progress, inconsistent custody frameworks and lack of standardization of smart contract. Most tokenized assets today settle in isolation, with cash legs to the chain limiting efficiency gains. Tokenized asset markets are struggling to unlock secondary liquidity without shared delivery-to-payment standards (DVP).

Regulatory clarity varies markedly by region. Switzerland, the EU, Singapore and the United Arab Emirates have developed extensive legal frameworks for tokenized securities and infrastructure, while larger markets such as India and China remain restrictive or undefined. This uneven progress complicates cross -border operations and forces companies to tailor infrastructure market for market.

Despite these headwinds, the early adoptors are expanding rapidly. The report identifies three phases of tokenization: Adoption of low risk of well -known instruments such as bonds and funds; extension to complex products such as private credit and real estate; and full market transformation, including illiquid assets such as infrastructure and private equity. Most companies are currently in the first or second phase, with scalability that is related to regulatory adaptation and infrastructure maturity.

Tokenization can lock meaningful savings for processes such as bond issues, real estate fund tokenization and security management, which drives further growth, noted the report.

Costs are less of a limitation for businesses, the report says. Focused tokenization projects can now be launched for less than $ 2 million, while end-to-end integrations-by issuing issuance, custody, compliance and trade-caner cost up to $ 100 million for large institutions.

Without industrial coordinated action, however, the same silos and fragmentation roofing try to eliminate could re -enter into digital form, said in the report Jorgen Ouaknine, Global Head of Innovation and Digital Assets at Euroclear, a global financial market infrastructure provider.