RWA Sector Poised for $600 Million Growth by 2030: Report

The growing tokenized fund sector could see its value reach $600 billion in the next six years, according to a white paper jointly published by Boston Consulting Group (BCG), Aptos Labs and Invesco.

The tokenized asset market, which represents tangible resources such as real estate, art, and traditional securities on a blockchain, currently has more than $2 billion in assets under management (AUM), and growth is expected to future will accelerate as financing matures in the chain.

Unpacking the tokenization boom

According to the BCG report, the shift to tokenization could offer greater programmability and transparency. It would also enable instant transactions and 24/7 transferability, while offering liquidity and fractional ownership options.

The report predicts that tokenized funds will capture at least 1% of global AUM of mutual funds and exchange-traded funds (ETFs) by 2030. This would parallel the rapid rise of traditional ETFs as they first launched in the 1990s.

Since the mutual fund market is expected to be worth $60 trillion at that time, 1% would translate into a valuation of roughly $600 billion.

The consultancy identified two growth paths for the tokenized funds that would lead them to the projected valuation. First, asset managers can launch new fund vehicles to appeal to younger, more tech-savvy investor groups. Alternatively, they could convert existing fund structures, including mutual funds and ETFs, into tokenized models.

Regulatory advances for fuel growth

If supported by clear regulatory guidelines, BCG believes these strategies could catapult the market into the trillions, although the $600 billion figure remains the conservative estimate.

Jurisdictions such as Japan, Hong Kong, Singapore and several Middle Eastern countries are laying the groundwork for this predicted boom. For example, the Hong Kong Monetary Authority (HKMA) is undertaking initiatives such as e-HKD+ and Project Ensemble to create enabling environments and frameworks for tokenized assets and blockchain-powered digital currency ecosystems.

Several blockchain companies and traditional financial firms have also entered the seemingly lucrative sector, which, according to data from RWA.xyz, currently has more than $13 billion in real assets on the chain.

Earlier this year, crypto payments platform Ripple partnered with Canadian startup Axelar to advance RWA tokenization and increase interoperability within the XRP Ledger blockchain.

More recently, US financial services giant Fidelity joined the race, with reports indicating it was evaluating stablecoins and tokenized treasury products.

At the same time, blockchain oracle provider Chainlink was partnering with ANZ, one of Australia’s largest banks, under the Monetary Authority of Singapore’s Project Guardian. The goal was to enable cross-chain exchange of tokenized assets using Chainlink’s cross-chain interoperability protocol.

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