Opportunities
Last updated
Last updated
Tokenization saw strong growth in 2024, with tokenized real-world assets (RWA) expanding by over 60%, rising from $8.4B at the end of 2023 to $13.5B by December 1, 2024 (excluding stablecoins), according to rwa.xyz. Analysts predict this sector could grow to between $2T and $30T within five years – potentially a 50x increase. Major asset managers and financial institutions, including BlackRock and Franklin Templeton, have increasingly adopted tokenization for government securities and traditional assets on both permissioned and public blockchains, enabling faster cross-border settlements and continuous trading.
The market is still in its formative stages, presenting a rare opportunity for early movers. Key drivers of this imminent growth include:
Market Consensus: Increasing institutional consensus around tokenization as a scalable and efficient solution for asset management.
Infrastructure Readiness: Blockchain platforms are evolving to handle RWA tokenization at scale, reducing friction and improving accessibility.
Regulatory Progress: Legal frameworks are becoming clearer, reducing barriers to entry and paving the way for broader institutional adoption.
This convergence of market readiness, advancing technology, and regulatory support creates ideal conditions for projects to establish leadership in the tokenized RWA space.
According to aggregator Artemis, RWA tokens grew nearly 28% on average during the second quarter of 2024, outshining other crypto sectors. In that same period, BTC and ETH slumped 10% and 2%, meme coins dropped 33% in line with the overall crypto market, and even AI-related tokens registered a massive 60.7% drop in Q2. So, RWA is hot, but what are they?
Tokenisation of Real-World Assets (RWA) refers to the process of converting physical or traditional financial assets into digital tokens on a blockchain. This process allows the representation of ownership or rights to the underlying asset in a digital format, enabling easier transfer, trading, and management of those assets.
