Tokenized asset market to hit $10T by 2030: Chainlink report
Josh O"Sullivan5 hours agoTokenized asset market to hit $10T by 2030: Chainlink reportDespite current crypto market volatility, Chainlink projects rapid growth in tokenized assets, driven by institutional demand and regulatory advancements.7174 Total views21 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onChainlink, a decentralized oracle provider, has released a report forecasting that the global tokenized asset market could surge to $10 trillion by 2030.
Chainlink outlines how institutional adoption and regulatory progression drive the rise of tokenized assets globally despite the recent volatility in cryptocurrency markets.
The report draws on insights from a report by 21.co, a blockchain-focused fintech company, and a joint study by BCG, a management consulting firm, and ADDX, a digital securities exchange.“[The 21.co report and joint study by BCG and ADDX] project the market for tokenized assets to reach $10 trillion and $16 trillion, respectively, by 2030.”
Related:21.co Bitcoin wrapper to add Chainlink proof of reserveKey findings of the report
According to the Chainlink report, the current value of tokenized assets sits at approximately $118.57 billion, with primarily Ethereum dominating the market, holding 58% of all tokenized assets.
The report highlights that the tokenization of assets can “bring liquidity to historically illiquid assets,” like real estate and private equity, by representing these assets “as digital onchain tokens.”“[Tokenized assets] not only become more accessible but can also be incorporated more efficiently into the processes of financial institutions.”
Related:Chainlink’s Sergey Nazarov predicts asset tokenization will transform Web3Market growth factors
The report notes several factors that contribute to the growth of the tokenized asset market projections, including institutional interest, blockchain integration and a supportive regulatory framework.
It cites Ethereum’s over 6 million daily active users (DAUs) as a key driving force behind the market growth, alongside regulatory interests like Singapore’s Monetary Authority’s (MAS) Project Guardian.
Initiatives like Project Guardian involve piloting blockchain-based tokenization of bonds and deposits with support from regulators for essential security and compliance.
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A survey by BNY Mellon and Celent, cited in the Chainlink report, reveals that 97% of institutional investors agree that tokenization will “revolutionize asset management.”
Outside of financial markets and institutional involvement, the report mentions a World Economic Forum estimate that “$867 trillion of value is ready to be disrupted by tokenization.”
Despite the positive outlook, multiple challenges surrounding audit standards, asset valuation and regulatory compliance still exist before a $10-trillion forecast can come to fruition.
With ongoing lawsuits issued to crypto firms like Coinbase by the United States Securities and Exchange Commission, the road ahead for the tokenized assets market may still be bumpy.
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