Financial institutions will drive RWA tokenization’s trillion-dollar growth
The real-world asset (RWA) tokenization industry is projected to exceed $30 trillion by 2030, primarily boosted by financial institutions. Tokenization involves creating digital representations of physical assets on blockchain, which enhances accessibility and trading opportunities. According to Jesse Knutson, head of operations at Bitfinex Securities, nimble institutions such as family offices are expected to impact the early growth of this sector significantly. Predictions indicate that the RWA market could grow by more than 50 times by 2030, with estimates ranging from $4 trillion to $30 trillion. Currently, the RWA sector is valued at around $185 billion, largely driven by the dominance of stablecoins, which account for over $170 billion of that value. Knutson believes that the RWA tokenization industry will likely mirror the growth trajectory seen in cryptocurrencies, especially following institutional endorsements like the introduction of Bitcoin ETFs in the U.S. As more institutions embrace tokenization, the market is poised for significant expansion.
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