Tokenized Real-World Asset Market to Hit $10 Trillion By 2030, 21.co Projects – Can RWAs Power Ethereum (ETH) to Multi-Trillion Market Cap?
The market capitalization of tokenized real-world assets (RWAs) could balloon to as much as $10 trillion by the end of the decade in a bullish scenario, argued digital asset management company 21.co in a recently released report.
Even in a bearish scenario, the market cap of tokenized RWAs will still reach $3.5 trillion before 2030, 21.co projected.
The market cap of tokenized RWAs was last around $116 billion, with USD-pegged stablecoins accounting for around 97% of this.
Around 60% of all tokenized RWAs currently in existence are issued on the Ethereum blockchain, which remains the most widely used layer-1 protocol in the Decentralized Finance (DeFi), Non-Fungible Token (NFT) and web3 worlds.
These digital dollars mark the “first successful tokenization implementation”, according to 21.co.
USD-pegged stablecoins like Tether’s USDT and Circle’s USDC allow crypto users to transfer an asset that almost exactly approximates the real value of an actual US dollar to one another in a permissionless, censorship-resistant, borderless and near-instant manner.
Both cryptocurrencies are backed 1:1 with real US dollar or liquid-equivalent sat in bank accounts controlled by Tether and Circle.
21.co noted rapid growth in other areas of asset tokenization, pointing to the 450% growth rate seen in the tokenized US government bond market, which has been aided by the fact that US bond yields have risen to multi-decade highs this year.
“The convergence between crypto and traditional asset classes, including fiat currencies, equities, government bonds, and real estate, is experiencing an unprecedented growth,” 21.co noted in its report.
As the crypto sector matures, more and more traditional institutions will build their own products on top of
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