The market for non-stablecoin tokenization is gaining traction as banks and investment institutions explore growth opportunities in this sector.
Non-Stablecoin Tokenization Market
Standard Chartered (STAN) is investigating the tokenization of assets that are not linked to stablecoins. The bank highlights that the non-stablecoin asset market is valued at $23 billion and has significant growth potential. While stablecoins dominate real-world asset tokenization, the bank sees signs of a broader shift in this direction.
Prospects and Barriers of Tokenization
The bank notes that improved regulatory clarity and a focus on assets that benefit from tokenization will ensure steady growth. Geoff Kendrick, head of digital assets research at STAN, states that "to unlock growth potential, tokenization efforts need to focus on on-chain assets that are cheaper and/or more liquid than their off-chain equivalents." However, unclear KYC (Know Your Customer) regulations remain a barrier to development.
Market Projections for RWAs
According to Boston Consulting Group, RWA tokenization could grow to $18.9 trillion by 2033. This indicates a 53% compound annual growth rate, although some business leaders question these projections, emphasizing that the sector is still too new. Nevertheless, companies like BlackRock, JPMorgan, and Goldman Sachs are already testing tokenized funds, and governments like Singapore and Hong Kong are drafting regulations to facilitate market growth.
Experts believe the non-stablecoin tokenization market will grow despite existing barriers. Advancements in technology and improved regulatory frameworks may contribute to this growth.
