Tokenized Asset Market to Hit $30 Trillion by 2030

Chainlink, a decentralized oracle provider, has released a report predicting that the global tokenized asset market could reach $10 trillion by 2030.

The report highlights how institutional adoption and regulatory advancements are fueling the rise of tokenized assets, despite the volatility seen in cryptocurrency markets.

It draws on data from a report by 21.co, a blockchain fintech company, and a joint study by BCG, a management consulting firm, and ADDX, a digital securities exchange.

“[The 21.co report and joint study by BCG and ADDX] project the market for tokenized assets to reach $10 trillion and $16 trillion, respectively, by 2030.”

Chainlink's report estimates that the current value of tokenized assets is around $118.57 billion, with Ethereum holding the majority share, controlling 58% of the market.

The report emphasizes the benefits of tokenizing assets, such as improving liquidity for traditionally illiquid assets like real estate and private equity by representing them as "digital onchain tokens."

This process makes these assets more accessible and easier to incorporate into financial institutions' workflows.

“[Tokenized assets] not only become more accessible but can also be incorporated more efficiently into the processes of financial institutions.”

Several factors contribute to the optimistic growth projections for the tokenized asset market, including institutional interest, blockchain integration, and a favorable regulatory environment.

For instance, Ethereum's over 6 million daily active users (DAUs) play a key role in driving market growth, alongside regulatory initiatives like Singapore's Monetary Authority's (MAS) Project Guardian.

Project Guardian is a pilot program that explores blockchain-based tokenization of bonds and deposits, supported by regulators to ensure security and compliance.

A survey by BNY Mellon and Celent, cited in the report, shows that 97% of institutional investors believe that tokenization will "revolutionize asset management."

Beyond institutional interest, the World Economic Forum estimates that “$867 trillion of value is ready to be disrupted by tokenization.”

However, challenges such as audit standards, asset valuation, and regulatory compliance still need to be addressed before the market reaches the $10 trillion forecast.

The report also points to ongoing lawsuits, like those involving Coinbase and the U.S. Securities and Exchange Commission, as potential hurdles for the tokenized asset market’s growth trajectory.

Sources:

https://cointelegraph.com/news/chainlink-forecasts-10-trillion-tokenized-asset-market-by-2030

https://pages.chain.link/hubfs/e/definitive-guide-to-tokenized-assets.pdf

https://www3.weforum.org/docs/WEF_Digital_Assets_Distributed_Ledger_Technology_2021.pdf