According to recent study, the tokenisation of real world assets (RWA) will be a multi-trillion-dollar market by the end of the decade.
According to Boston Consulting Group (BCG), tokenization of global illiquid assets might become a $16 trillion business by 2030. Equities, bonds, investment funds, and other financial instruments are examples of real-world assets.
Commodities such as gold and silver, as well as real estate, can be included.
Furthermore, many expect that this will serve as a spur for widespread cryptocurrency adoption.
Kathleen Boyle, editor of the Citi GPS, anticipated that CBDCs, tokenized assets in gaming, and blockchain-based payments on social media will boost adoption, adding:
“Successful adoption will occur when blockchain has billions of users who are unaware they are using the technology.”
Executives in the cryptocurrency business have shared this sentiment.
On March 29, Circle CEO Jeremy Allaire stated, “It is self-evident that tokenised property and contracts will be the standard in the next 5-10 years.”
Similarly, earlier this year, Goldman Sachs created a digital asset platform (GS DAP) to tokenize traditional assets.
The Singapore Monetary Authority is testing asset tokenisation under Project Guardian, and Siemens has issued a 60 million Euro bond on Polygon, indicating that it is already happening, he said.
RWA tokenization also provides more steady yields than highly volatile DeFi returns that are influenced by the crypto bull and bear cycles.
Additional advantages include more flexible investments because a token can be used to purchase a portion of a property for individuals who cannot afford the entire thing. It also increases the liquidity and trade-ability of traditional assets such as art, real estate, and private equity.
There are already a number of crypto protocols dealing in real-world asset tokenisation. These include GoldFinch, Centrifuge, TrueFi, Maple Finance, and DeFi pioneer MakerDAO.
Maker’s ‘Endgame Plan’ proposes converting its DAI stablecoin to a free-floating asset, initially collateralized by real-world assets.
There are already several crypto protocols that deal with real-world asset tokenisation. GoldFinch, Centrifuge, TrueFi, Maple Finance, and DeFi pioneer MakerDAO are among them.
The ‘Endgame Plan’ of Maker envisions transforming its DAI stablecoin into a free-floating currency, initially collateralized by real-world assets.
