A collaborative study by Ripple and Boston Consulting Group forecasts that the market for tokenized assets could soar to $18.9 trillion in the next eight years as major organizations embrace blockchain technology.
The findings from a recent report titled “Approaching the Tokenization Tipping Point” co-authored by Ripple (XRP) and BCG, highlight the remarkable potential for tokenizing real-world assets.
The forecast indicates that this sector is poised for a 53% compound annual growth rate, driven largely by stablecoins and real estate. By 2025, the market for tokenized assets is projected to reach $600 billion, with the potential to balloon to $18.9 trillion.
This rapid expansion is attributed to several factors, including advancements in blockchain technology suited for large enterprises, improved regulatory clarity surrounding tokenized assets, and a growing demand from younger investors for digital assets.
Laurent Marochini, the CEO of Standard Chartered’s Luxembourg division, discussed the increasing interest in tokenization, particularly among banks and financial institutions, viewing it as an opportunity for diverse market integration.
“Tokenization is progressing at varying rates across different asset classes, showing the fastest growth where it provides real efficiencies and where secondary markets can develop,” Marochini stated.
The report clarifies that the anticipated $18.9 trillion market size excludes cryptocurrencies, as they are not categorized as tokenized assets, and central bank digital currencies, which may not necessarily rely on blockchain technology. The data also omits the markets of China and Russia due to limited access to market insights.
Real estate continues to be one of the predominant assets in tokenization, with a value exceeding $300 trillion. In contrast, investment-grade bonds account for approximately $140 trillion, and global trade finance surpasses $10 trillion.
Earlier, a separate analysis by McKinsey projected that the tokenized market could achieve a $2 trillion market cap by 2030, largely due to the entry of new players such as Coinbase Asset Management, Glasstower, and Ripple, who are expected to join the sector by 2025.