- The market of tokenized assets, including stablecoins, is projected to reach $18.9 trillion by 2033, according to Ripple and BCG.
- The report highlighted tokenization of money markets, private credit and carbon emissions as use cases offering operational efficiencies.
- Unclear regulations, lack of standardization and market fragmentation are among barriers for broader adoption, the report said.
The market for tokenized financial instruments, or real-world assets (RWAs), could reach $18.9 trillion by 2033 as the technology's growth is nearing a "tipping point," according to a joint report on Monday by Boston Consulting Group (BCG) by payments-focused digital asset infrastructure firm Ripple.
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That would mean an average 53% compound annual growth rate (CAGR), taking the middle ground between the report's conservative scenario of $12 trillion in tokenized assets in the next eight years and a more optimistic $23.4 trillion projection.
Tokenization is the process of using blockchain rails to record ownership and move assets—securities, commodities, real estate. It's a red-hot sector in crypto, with several global traditional financial firms pursuing tokenization to achieve efficiency gains, faster and cheaper settlements and around-the-clock transactions. JPMorgan’s Kinexys platform has already processed more than $1.5 trillion in tokenized transactions, with over $2 billion in daily volume. BlackRock’s tokenized U.S. dollar money market fund (BUIDL), issued with tokenization firm Securitize, nears $2 billion in assets under management and is increasingly being used in decentralized finance (DeFi).
“[The] technology is ready, regulation is evolving, and foundational use cases are in the market,” said Martijn Siebrand, Digital Assets Program Manager at ABN AMRO, in the report.
The report highlighted tokenized government bonds, U.S. Treasuries, as an early success, allowing corporate treasurers seamlessly shift idle cash into tokenized short-term government bonds from digital wallets without any intermediaries, managing liquidity in real time and around the clock.Private credit is another sector drawing attention, opening access to traditionally opaque and illiquid markets while offering investors clearer pricing and fractional ownership. Similarly, carbon markets are flagged as fertile ground, where blockchain-based registries could enhance transparency and traceability of emissions credits.