What if I told you that experts are wrong? Over the years, several prestigious consulting and financial institutions have issued forecasts on the growth of tokenization by the end of the decade. It is interesting to know how between all this “expertise”, their ranges vary between 2 dollars (McKinsey) and 16 billions of dollars (BCG). Fourteen billions of dollars, it’s a hell of a big spread!
Since 2017, there have been trials for tokenize assets from around the world. Along the way, we have seen almost all the asset classes brought to the chain. Today, there are more than $ 50 billion in equity, bonds and token real estate, with some of the world’s largest financial institutions, such as BlackRock, Franklin Templeton and Apollo who are starting to invest serious resources in the tokenization. Add more than $ 200 billion in stablescoins (or what we can call dollars in tokenized) and we have a quarter of dollars in Rwas.
What will this look like when the tap really lights up? We believe that it seems to go from $ 250 billion today to $ 30 billion in 2030, all thanks to the new Crypto clarity in the United States
A major boon for America and the world
Whether it is the Fed, the new Crypto Tsar, the two houses in the Congress or the President itself, this new administration has understood and adopted the advantages of the stablecoins to further improve the domination of the dollar worldwide.
If the US dollar is the global reserve currency for the web2 world, why not also for the web3 world? In other words, the more people buy stablecoins, the majority of which are in dollars, the better for the United States
With the right attitude on the crypto, we should see the clarity of the market on the classifications of tokens (an official taxonomy) and the structure of the Stablescoin market in new legislation before the Congress. The adoption of such a bill will offer a green light for blockchain to be used on capital markets in the United States, previous prediction reports have not taken this new wave of clarity and support into account On a government level for crypto, stablecoins and rwas.
Stablecoins and cutlery (tokens supported by the Treasury) should grow significantly from their current position of $ 220 billion, potentially up to 3 to 5 billions of dollars by 2030 if you take into account the Commercial adoption, the growth of digital assets and the demand for performance in mind.
This case of use of RWA has not only found the adjustment of the product market by crypto users, but it will also become a payment solution and a payment rail for the capital markets in general. All assets can now perform a new almost instant financial operating system using the blockchain to enter and get out of any real tokenized active (RWA) or a cryptographic asset using Stablecoins.
The tokenization revolution is inevitable. This is actually what the CEOs of Blackrock and JP Morgan openly say and act on.
He can’t all be token, right?
Most criticisms will make sure that the more than a hundred billion stocks of stocks or hundreds of billions of dollars in real estate, or billions of private companies, or billions of basic products, or billions of ‘Obligations and credit could all be tokenized. In a few years, these criticisms 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 tokenized.
This is more a question of how fast each asset class will benefit from migration on the chain. Some assets will feel more pressure to adapt while other assets are so important that it is not much necessary to move the needle to suddenly go to billions of billions, or via a new active issue , a growth of token active ingredients, just inherited active ingredients migrating on the head.
My conversations with banks, asset managers, crypto exchanges and industry leaders tell me that there is a renewed spirit for the tokenization of assets, the difference being that the traditional financial sector and the Regulators now better understand the advantages of blockchain technology, which implies that the growth in the growth of assets will occur more quickly than expected.
Here are some other reasons why our forecasts are higher than previous estimates:
When we examine some of the past forecasts, some of them like HSBC and Northern Trust use a methodology that is based on the calculation of the size of the asset class and the application of a nominal adoption percentage or in their CAS A range of 5 to 10% of active ingredients. Others like Standard Charterd refer to specific asset classes which increase more quickly than the others or in their case, citing 14% of the 30 billions of assets by 2034 from trade financing. STM’s methodology breaks down the eight largest asset classes in the world and considers regulatory and government support as a key factor in growth. Imagine if the California titles register was in the lead. It is a residential market of 10 billions of dollars that could be placed on a blockchain almost overnight. Thanks to the new clarity of the market in the United States and the success of the stablecoins, we expect a faster adoption of blockchain worldwide, which leads to $ 50 billions of annual RWA trading by the end of the decade.
It’s time to open the tap. Happy tokenization!
Please see the full report here.
