Tokenized bond market by 2030 30 x May – fintech exec
By 2030, the rated bond market could rise to at least $300 billion, representing a 30x gain from current levels. Lamin Brahimi, co-founder of Taurus SA – an enterprise-level digital asset company – told Cointelegraph that these are the figures of the fundamentals.
Brahimi cited a study from McKinsey that said the $300 billion estimate is a fundamental issue that includes government, municipal and corporate bonds.
According to the executive, the introduction of bonds allows for instant settlement time, reduces transaction costs and democratizes the investment process through fractional ownership.
Tokenized real-world assets (RWAs), which include bonds, stocks, stoichiometrics, and other real-world assets, are estimated to reach a market value of $10 trillion by 2030 as the world moves on-chain.
Real World Asset Token Estimates by Sector. Source: McKinsey & Company
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The future will be marked.
In a recent interview at the World Economic Forum in Davos, BlackRock CEO Larry Fink said that every stock and bond should be on-chain.
Fink also said that simulating real-world assets would democratize investment markets by lowering the barrier to entry.
According to data from RWA.xyz, the tokenized US Treasury sector currently has a market capitalization of over $3.4 billion.
The Hashnote Short Duration Yield Coin (USYC) commands the largest market share with an asset value of over $1.2 billion.
BlackRock's US Dollar Institutional Digital Liquid Fund (BUIDL) has the second highest market cap at over $642 million.
Market capitalization of tokenized US Treasury products. Source: RWA.xyz
In July 2024, BUIDL became the first tokenized treasury fund to reach the $500-million milestone and maintained its lead as the largest tokenized treasury product until December 2024.
At the time of writing, $2.4 billion of the $3.4 billion in tokenized reserves are available on the Ethereum network.
Although virtualization of real-world assets promises to reduce transaction costs for buyers and sellers, challenges remain.
Some tokenized bond pilot programs do not fully utilize permissionless and cost-effective blockchain technologies.
The presence of unnecessary human intermediaries in the bond issuance process introduces redundancies that increase costs and destroy the financial value of onchain.
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