The size of tokenized assets could grow by over 50 times in the next eight years and reach 10% of the global GDP by the end of this decade.
According to a study conducted by the Boston Consulting Group and the ADDX exchange, the tokenized assets sector can show significant growth over the next eight years. Analysts expect the market will be worth $16.1 trillion by 2030.
Research shows that the tokenized assets market is valued at $310 billion this year. The experts predict that the sector will double by 2023 (to $600 billion) and reach $5.2 trillion by 2026.
The volume of tokenized assets in the current year is about 0.4% of global GDP. However, the analysts predict the sector’s indicators will increase to 4% by 2026, and in eight years, the share of global GDP in tokenized assets will reach 10%.
According to BCG and ADDX researchers, the main prerequisites for the global adoption of tokenization technology may include:
- growing volume of trading in tokenized assets;
- state-level adoption of the technology in many countries;
- acceptance among monetary authorities and regulators;
- the increased number of tokenized assets;
- the rising popularity of blockchain technology.
The sector’s projected growth is also driven by demand from a wide range of investors interested in accessing private markets. Since tokenization involves the fragmentation of assets, it will lower the entry threshold for investors.
The most active growth of the tokenized assets sector is expected in real estate, investment funds, bonds, and stocks. However, analysts predict an increase in demand for technology in less traditional assets, such as patents.
Recall that the tokenization of physical assets has gained widespread popularity in recent years. For example, Vietnam uses technologies to store human genomic profiles, and Belgium has tokenized a painting by James Ensor. A more global approach toward using innovative technologies is taken by the government of the Central African Republic, which plans to tokenize the country’s fossil natural resources. Investors can already buy tokenized carbon credits and oil and gas fields, and the technology also allows companies to sell the working time of their specialists.
