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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.

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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.

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