Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
RWA sector expected to reach $600 billion by 2030

RWA sector expected to reach $600 billion by 2030

GrafaGrafa2024/11/03 00:00
By:Mahathir Bayena

A report from Boston Consulting Group (BCG) indicates that the tokenised assets market could reach $600 billion by 2030, representing at least 1% of the global mutual fund and ETF market.

This projection is detailed in a whitepaper released in collaboration with Aptos Labs and Invesco.

Currently, the market for tokenised assets, which includes tangible resources such as real estate, art, and traditional securities on a blockchain, has over $2 billion in assets under management (AUM).

Future growth is anticipated as on-chain finance matures.

The BCG report emphasises that the shift toward tokenisation may offer enhanced programmability and transparency.

It would also facilitate instant transactions and 24/7 transferability while providing liquidity and options for fractional ownership.

The report predicts that tokenised funds could capture at least 1% of global mutual fund and ETF AUM by 2030.

With the mutual fund market expected to be valued at approximately $60 trillion by that time, this 1% projection translates to an estimated valuation of around $600 billion.

BCG identified two potential growth paths for tokenised funds.

First, asset managers may create new fund vehicles aimed at younger, more tech-savvy investors.

Alternatively, existing fund structures such as mutual funds and ETFs could be converted into tokenised models.

The report suggests that clear regulatory frameworks could significantly boost this market toward trillions, although the $600 billion figure remains a conservative estimate.

Countries like Japan, Hong Kong, Singapore, and several Middle Eastern nations are establishing favorable conditions for this anticipated growth.

For example, the Hong Kong Monetary Authority (HKMA) is implementing initiatives like the e-HKD+ and Project Ensemble to create supportive environments for tokenised assets and blockchain-based digital currency ecosystems.

Additionally, various blockchain companies and traditional finance firms are entering this growing sector.

Data from RWA.xyz indicates that there are currently over $13 billion in total on-chain real-world assets.

Earlier this year, Ripple (CRYPTO:XRP) partnered with Canadian startup Axelar (CRYPTO:AXL) to advance RWA tokenisation and enhance interoperability within the XRP Ledger blockchain.

Recently, Fidelity has also been exploring stablecoins and tokenised treasury products as part of its strategy in this space.

At the same time, Chainlink (CRYPTO:LINK) collaborated with ANZ under Singapore’s Project Guardian to facilitate cross-chain exchanges of tokenised assets through its Cross-Chain Interoperability Protocol.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Ripple announces tokenized money market fund launching on XRP Ledger

Ripple said a tokenized money market fund has launched on the XRP Ledger.The launch was made possible through a partnership with Archax, an FCA-regulated digital asset exchange.

The Block2024/11/25 21:23

The Daily: MicroStrategy buys record $5.4 billion in bitcoin, Sky Mavis cuts 21% of its workforce and more

Business intelligence firm and corporate bitcoin holder MicroStrategy purchased another 55,500 BTC for $5.4 billion between Nov. 18 and Nov. 24, according to an 8-K filing with the SEC on Monday.Axie Infinity crypto game developer Sky Mavis is laying off 21% of its workforce, affecting about 50 of its 250 global team, amid a “shift in priorities,” according to CEO and co-founder Trung Nguyen.Solana’s decentralized exchanges surpassed $100 billion in monthly trading volume for the first time, generating a r

The Block2024/11/25 21:23

Justin Sun's Tron buys $30 million of Trump-backed World Liberty Financial tokens

Tron founder Justin Sun said his firm has bought $30 million worth of World Liberty Financial tokens, the crypto project supported by newly-elected U.S. President Donald Trump.Sun said the purchase made Tron the largest investor in World Liberty Financial.

The Block2024/11/25 21:23