Chainlink, a decentralized oracle provider, has released a comprehensive report predicting that the global tokenized asset market could experience a significant surge and reach a value of $10 trillion by the year 2030.
The report emphasizes that despite recent volatility in cryptocurrency markets, the adoption of tokenized assets by institutional investors and the advancement of regulatory frameworks are driving the global rise of this market.
To compile the report, Chainlink drew insights from a report by 21.co, a blockchain-focused fintech company, as well as a joint study conducted by BCG, a management consulting firm, and ADDX, a digital securities exchange.
Key findings from the report indicate that the current value of tokenized assets is approximately $118.57 billion, with Ethereum being the dominant player, representing 58% of all tokenized assets.
The report highlights the potential of tokenization to introduce liquidity to traditionally illiquid assets such as real estate and private equity by representing them as digital onchain tokens.
Various factors contribute to the projected growth of the tokenized asset market. These include increasing institutional interest, the integration of blockchain technology, and the establishment of supportive regulatory frameworks. The report also points out that Ethereum’s large user base of over 6 million daily active users (DAUs) is a significant driving force behind market growth. Additionally, initiatives like Singapore’s Monetary Authority’s (MAS) Project Guardian, which involves the pilot testing of blockchain-based tokenization of bonds and deposits with regulatory support, further contribute to market expansion.
A survey conducted by BNY Mellon and Celent, cited in the Chainlink report, reveals that 97% of institutional investors believe that tokenization will revolutionize asset management. Furthermore, the report mentions a World Economic Forum estimate that suggests tokenization has the potential to disrupt a staggering $867 trillion of value.
Despite the optimistic outlook, several challenges remain that need to be addressed before the $10 trillion forecast can become a reality. These challenges include the establishment of audit standards, accurate asset valuation methods, and regulatory compliance. Ongoing legal cases involving crypto firms like Coinbase and the United States Securities and Exchange Commission also pose potential obstacles to the development of the tokenized assets market.
In conclusion, Chainlink’s report provides valuable insights into the potential growth and impact of tokenized assets on the global financial landscape. While there are challenges to overcome, the report highlights the transformative power of tokenization and its ability to revolutionize asset management in the future.