What happens if I tell you that experts are wrong? Over the years, several consulting companies and financial institutions have presented forecasts on the growth of tokenization for the end of the decade. It is interesting how among all that “experience”, its ranges vary between $ 2 billion (McKinsey) and $ 16 billion (BCG). Fourteen billions of dollars are a great spread!
Since 2017, there have been rehearsals to tokenize assets worldwide. Along the way, we have seen almost all kinds of assets brought in the chain. Today there are more than $ 50 billion in tokenized shares, bonds and real estate, with some of the world’s largest financial institutions, such as Blackrock, Franklin Templeton and Apollo starting to invest serious resources in tokenization. Add more than $ 200 billion in stablcoins (or what we can call tokenized dollars) and we have a quarter of trillions of dollars in Rwas.
How will it be seen when the tap really turns on? We believe that it seems to go from $ 250 billion today to $ 30 billion in 2030, all thanks to the new cryptographic clarity in the United States
A great blessing to America and the world
Whether it is the Fed, the new cryptographic tsar, both cameras in Congress or the President himself, this new administration has understood and adopted the benefits of Stablcoins to further improve the domain of the dollar in the world.
If the US dollar is the world reserve currency for the web2, why not for the web3 world? In a nutshell, the more people buy stablcoins, most of which are in dollars, the better it will be for the United States
With the right attitude about cryptography, we should see market clarity about tokens classifications (an official taxonomy) and the Stablecoin market structure in a new legislation before Congress. The approval of said bill will offer a green light so that Blockchain is used in capital markets in the previous prediction reports of the US. UU. It does not take into account this new wave of clarity and support throughout the government for crypto , stable and rwas.
Stablecoins and performance (tokens backed by treasure) will grow significantly from their current position of $ 220 billion, potentially up to $ 3 to $ 5 billion by 2030 if it takes into account commercial adoption, the growth of digital assets and the demand for yield in the chain.
This case of use of RWA has not only found the adjustment of the product market by cryptography users, but will also become a settlement and payment rail solution for capital markets in general. All assets can now make transactions in a new almost instant financial operating system that uses blockchain to enter and leave any active in the real world tokenized (RWA) or a cryptographic active using stablocoins.
The tokenization revolution is inevitable. Which is actually what the CEO of Blackrock and JP Morgan have been openly saying and acting.
It can’t be tokenized, right?
Most critics will laugh at the notion that more than one hundred billion in shares or hundreds of billions in real estate, or billion in private companies, or billion in basic products, or billion in bonds and credit could be tokenized. In a few years, these critics will say that tokenization is a necessity and that it is the innovation of the century for finance (because it is).
The answer is yes, everything can be token.
It is more than a matter of how quickly each class of migrating assets will be used in the chain. Some assets will feel more pressure to adapt, while other assets are so large that much is needed to move the needle to reach Billions suddenly, either through a new asset emission, growth of tokenized assets or simply inherited active They migrate in the chain.
My conversations with banks, asset administrators, encryption exchanges and industry leaders tell me that there is a renewed spirit for asset token, since the sector and traditional finance regulators now better understand the benefits of blockchain technology , which implies that the growth of asset tokenization will happen faster than the prognosis previously.
Here are some other reasons why our forecasts are higher than previous estimates:
When we observe some of the past forecasts, some of them, such as HSBC and Northern Trust, use a methodology that is based on calculating the size of the asset class and applying a nominal percentage of adoption or in its case a range of 5-10 % of total assets. Others such as Standard Chartered alludes to classes of specific assets that grow faster than others or in their case they cite 14% of $ 30 billion of assets by 2034 from commercial finances. The STM methodology broken down the eight largest classes in the world and considers regulatory and governmental support as a key growth factor. Imagine if the California title record were in the chain. That is a residential domestic market of $ 10 billion that could be placed in a block chain practically during the night. Thanks to the new market clarity in the United States and the success of Stablecoins, we expect a faster blockchain adoption worldwide, which leads to $ 50 billion in RWA’s annual negotiation at the end of the decade.
It is time to open the tap. Happy tokenization!
See the full report here.
