A Growth Of Over %4,900 Is Eminent In Tokenized Assets By 2030

Aleksei Dmitry Melnik May 12, 2023

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It seems like tokenized assets might be representing %10 of global GDP by 2030 with these growth rates. These tokenized assets are expected to reach $16.1 trillion according to BinaryX in less than ten years’ time. Their value is already far greater than the $310 billion it was registered in 2022. The report from BinaryX points out art, real estate, and commodities as the main real-world assets that are to be tokenized.

Tokenized Real Assets have a Great Potential

There are two ways in which tokenization may occur: a real asset’s creation of a digital version that is registered in the blockchain, or the incorporation of a preexisting asset that has already been issued in the real world onto a blockchain directly. For the first, the tokenization of a property that is divided into tokens of smaller values could be an instance. For the latter, the use case can be represented by issuing securities -like debentures- on the blockchain.

A Growth Of Over 4900 Is Eminent In Tokenized Assets By 2030 2

These real-world assets are also known as RWA. BinaryX divides RWA into two distinct parts; tangible and intangible. The first one is composed of commodities, vehicles, and real estate; while the latter consists of shares, carbon credits, and debentures. BinaryX assesses that RWA will be one of the largest growth areas within the cryptocurrency ecosystem in 2023, according to a report which was published by CoinShares in January. The firm shows some tests carried out by traditional banks with tokenized assets as an instance of the promising potential of this project.

BinaryX Shows the Amount of Loans Taken

“JPMorgan, Deutsche Bank, and SBI traded tokenized coins and sovereign bonds in November 2022, using Ethereum’s second layer scaling solution, Polygon, for the experiment,” states the report from BinaryX. The report also suggests that “MakerDAO is exploring real-world asset tokenization by proposing DAI collateralization with these assets”.

BinaryX also shows that loans taken in decentralized applications using these real assets as collateral have increased in magnitude in recent months. $140 million worth of loans have been reached currently. “This increase underscores the demand for RWA tokens as a way to fund real-world assets,” suggest BinaryX.