Financial institutions will drive the trillion-dollar development of RWA tokenization
Financial institutions will be the main drivers of the growing tokenization industry by 2030, which could see a growth of more than 50 times.
Real-world asset (RWA) tokens refer to financial and other tangible assets produced on an immutable blockchain ledger and increase investor access and trading opportunities around these assets.
According to Jesse Knutson, Head of Operations at Bitfinex Securities, large financial institutions will be the main drivers of significant growth in the tokenization sector.
Institutions are already driving significant growth in the crypto industry that can flow into the tokenization sector, Knutson told Cointelegraph during a special event at Plan B Lugano.
“Faster movers like family offices, like family offices, these kinds of people are smarter institutions. I think they will have too much influence in these early days. But eventually, the benefits of tokenization will trickle down to mainstream institutional investors.
Bitfinex Securities' Jesse Knutson, interviewed by Cointelegraph's Zoltan Vardai. Clip 1. Source: YouTube
Some of the world's largest financial institutions and business consulting firms say that the RWA sector will grow more than 50 times by 2030 and reach more than $30 trillion.
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Tokenized Securities: The $Trillion Dollar Opportunity
Most organizations predict that the RWA sector will reach a market size of $4 trillion to $30 trillion by 2030.
RWA tokenization, market size projections in 2030. Source: Tren Finance
If the sector were to achieve the average forecast of about $ 10 trillion, according to the Tran Finance Research Report, including the stable coin market, the value of around $ 185 billion, representing a growth of 54 times.
Still, stablecoins continue to dominate the RWA sector, with a market share of more than $170 billion by October 2024. In comparison, securities and treasuries onchain are valued at $2.2 billion.
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The RWA sector follows the development direction of the crypto industry: Bitfinex
Bitcoin (BTC) saw significant growth this year, growing more than 116% year-to-day, after receiving a significant institutional nod in the form of Bitcoin exchange-traded funds (ETFs), the first place in the United States.
The RWA tokenization industry may follow the growth trajectory of the crypto space, said Bitfinex Securities' Knutson.
“The consensus view is that the markets are going to improve, and the direction in which they are likely to improve is similar to how the digital asset industry has been growing over the years.”
More institutions, including the world's largest asset management firm BlackRock, are increasing their bets on the success of the RWA sector. Other financial institutions, including UBS Asset Management, are running tokenization pilots.
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