According to Animoca Brands, real-world asset tokenization could potentially draw trillions of dollars from traditional finance into blockchain ecosystems. Researchers emphasize the vast opportunities present in this area.
Market Valuation of Asset Tokenization
In August of this year, Animoca Brands published a report in which researchers Andrew Ho and Ming Ruan highlighted a $400 trillion market encompassing traditional asset classes including private credit, treasury debt, commodities, equities, alternative funds, and global bonds. Meanwhile, the current real-world asset tokenization market is valued at just $26.5 billion, a small fraction of the total market potential.
Ethereum's Leadership and Competition in Tokenization
Ethereum remains the dominant blockchain for real asset tokenization, holding a 55% market share, which rises to 76% when including activity on layer-2 networks like Polygon, Arbitrum, and ZKsync. The volume of on-chain stablecoins and tokenized assets on Ethereum amounts to $156 billion, confirming its leading position in the market. However, Animoca's researchers warn that competition from high-performance blockchains and specialized private networks is just beginning.
Future of Tokenization and Its Impact on Institutional Markets
The report also points to a 'strategic race' among asset managers to develop integrated tokenization platforms capable of controlling the entire asset lifecycle. Long-term value, it notes, will accrue to players who can seamlessly merge traditional markets with blockchain infrastructure. By analyzing current trends, Animoca Brands states that the rapid growth of tokenized assets could become one of the major drivers of institutional blockchain adoption in the coming years.
The tokenization of real-world assets presents a significant opportunity for attracting investments into blockchain. The realization of this potential will depend on market players' ability to integrate new technological advancements with traditional financial instruments.
