An analysis conducted by Ripple and BCG predicts significant expansion of the tokenized asset market, potentially reaching $18.9 trillion in the next eight years.
Forecast of Tokenized Asset Market Growth
According to the report titled 'Approaching the Tokenization Tipping Point', published by Ripple and Boston Consulting Group, it is anticipated that the tokenization of real assets may significantly increase, aiming for a market size of $600 billion by 2025. With an estimated compound annual growth rate of 53%, this market could reach $18.9 trillion by 2031.
Growth Factors of the Tokenization Sector
The rapid growth in the tokenization sector can be attributed to several factors, including advancements in blockchain technology for large enterprises, improvements in regulatory clarity for tokenized assets, and the increasing interest of younger investors in digital assets.
Impact of Tokenization on Financial Institutions
Laurent Marochini, CEO of Standard Chartered in Luxembourg, remarked that tokenization provides new opportunities for integration into various markets. He emphasized, 'Tokenization is advancing at different speeds across asset classes — fastest where it delivers real efficiencies and where conditions allow for secondary markets to emerge.'
Therefore, the growing interest in the tokenization of real assets and advancements in technology may lead to a significant increase in the volume of this market, which could have major implications for the financial system.
