Chainlink’s report mentioned the scope for tokenized assets and how their benefits can influence financial markets and beyond.
Decentralized oracle network Chainlink issued a report stating that tokenized asset market share is to hit $10 trillion by 2030.
It cited the estimation from a study by consulting behemoth BGC and crypto exchange ADDX and a report from 21.co. “A report from 21.co and a joint study by BCG and ADDX project the market for tokenized assets to reach $10 trillion and $16 trillion, respectively, by 2030.” It also cited Northern Trust and HSBC estimating “that 5-10% of all assets will be digital by 2030” and a BNY Melon and Celent survey showing 97% of institutional investors believe “tokenization will revolutionize asset management.”
Chainlink’s outlook for tokenized assets comes from their growing adoption by institutional adoption and global regulatory acceptance. The World Economic Forum (WEF) would agree with Chainlink as it has stated that $867 trillion stands to be disrupted by tokenization. WEF’s belief comes from tokenization touching more than the financial markets, as its use cases can help bring revolutionary capabilities to numerous industries.
The report also mentioned the tokenized asset market’s value sits at $118 billion presently, with Ethereum dominating it, holding 58% of all assets of this type. Most of these assets, on Ethereum and elsewhere, are stablecoins pegged to fiat values. Ethereum’s dominance across the blockchain realm, reflected by 6 million daily active users (DAUs), is a major reason for the adoption of tokenized assets and their expected growth.
Beyond on-chain factors, Chainlink highlighted favorable actions taken by regulators like the Monetary Authority of Singapore. It is taking stride to ensure the benefits of asset tokenization can be felt very soon by institutional and retail investors by operating its Project Guardian sandbox. That allows policymakers and financial industry participants to collaborate and deploy blockchain- and tokenization-related use cases.
