Tokenization of real-world assets (RWAs) is anticipated to experience significant growth, with estimates suggesting that assets under management (AUM) could surpass $600 billion by 2030.
The Boston Consulting Group, in a report released on October 29, referred to RWA tokenization as “the third revolution in asset management.”
David Chan, a partner at BCG, noted increasing investor interest in tokenized funds, predicting they could represent 1% of global mutual funds and exchange-traded funds (ETFs) within seven years.
Bonds are seen as the frontrunners in adopting tokenization due to their structure and the potential for blockchain technology to enhance efficiency. State Street Global Advisors highlighted that the bond market is ripe for this transition because of recurring costs and complexity that can be streamlined through tokenization.
While private equity funds exhibit transformative potential, public equities face lower adoption rates due to the effectiveness of current systems. The Financial Stability Board noted that RWA tokenization is growing, primarily in government debt, followed by equity stakes in debt funds and commodities.
Additionally, the analytics platform rwa.xyz reported a 60% increase year-to-date in the total value of non-chain RWAs, now totaling $13.3 billion, reflecting the rising interest and research in this area from institutions and asset managers.
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