Tokenized assets are taking the digital asset sector by storm, as anticipated by Ripple, a leading digital asset infrastructure provider, and Boston Consulting Group, a well-known management consulting platform. The latest report developed by Ripple and Boston Consulting Group predicts the tokenized real-world assets sector to rise from $0.6T to a staggering $18.9T by the year 2033. This projected growth signifies the unprecedented advancement of the tokenized real-world assets throughout the financial landscape.
Ripple-BCG Report Anticipate Tokenized RWA Ecosystem’s Growth to $18.9T by 2033
The Ripple-BCG report predicts an exponential progress in the tokenized asset realm. In this respect, the respective market is expected to rise from the present $0.6T valuation to an enormous $18.9T by 2033. Before this, by the year 2030, this market could touch the $9.4T mark.
While giving his remarks on this development, BCG’s Partner and Managing Director Tibor Merey said that tokenization is bringing about a wider shift in the financial asset ecosystem. The key advancements of the tokenization include the provision of interoperable and programmable tools. This permits 24/7 transfers, automated compliance, as well as fractional ownership.
The report describes a 3-phase evolution of tokenized real-world assets (RWAs) over the upcoming years. In this respect, the 1st phase takes into account low-risk adoption. During this phase, the entities focus on tokenizing familiar instruments such as bonds and money market funds. Following that, the 2nd phase includes institutional expansion. This deals with scaling into complicated assets like real estate and private credit.
JPMorgan, BlackRock, and Fidelity Continue to Embed Tokenized RWAs into Real-World Finance
After that, the 3rd phase of the tokenization focuses on market transformation. In this phase, tokenization is embedded in the non-financial and financial products. As mentioned by RippleX’s SVP Markus Infanger, the early adopters such as JPMorgan, Fidelity, and BlackRock are already going through the respective phases. Moreover, the overall market is transforming from the asset tokenization to the integration of tokenized assets into real-world economic operations.
According to the Ripple – BCG report, a key factor increasing the growth of tokenized asset world is the provision of regulatory clarity in UAE and EU jurisdictions. Additionally, a fully developed tech infrastructure, taking into account custody platforms and wallets, is also contributing to this advancement. Moreover, the fintech and banking entities are making groundbreaking collaborations to drive tokenized RWA sector’s wide-scale adoption.
