Tokenization Market Size, Growth and Impact
This is an initial research sprint to get you the most important data first. Check out the Next Steps section for our plan of attack. As always, feel free to add comments or questions at the bottom.
The report provides insights on the market dynamics for real-world asset (RWA) tokenization, including the market size and projected growth as well as regulatory and technological frameworks impacting this space. Research conducted by Galaxy shows that the total value of tokenized RWAs was $2.5 billion as of September 30, 2023. Data on the market size and growth projection for the talent and personal brand segments was not available. More details on our logic have been provided in the Research Strategy section below.
- Data on the market size and growth projection for the talent and personal brand segment of the RWA tokenization market was limited to unavailable in the public domain. Our attempts to triangulate the data did not yield results because most market research reports have categorized the market into various asset classes that do not profile relevant segments, such as intellectual property, which would enable a triangulation.
- Therefore, as helpful findings, we have provided the size of the RWA tokenization market as a whole as well the various segments under it as they were presented in the resource from where the data was obtained.
Market Dynamics of Real-World Asset Tokenization on Blockchain
Market Size and Growth
- Research conducted by Galaxy shows that the total value of tokenized real world assets (RWA)s was $2.5 billion as of September 30, 2023. Gold and precious metals held the largest market share ($1.1 billion at 66.89%) followed by treasuries and other bonds ($671 million at 26.96%) and private credit ($459 million at 18.47%).
- The October 2023 "State of Tokenization" report by 21.co, a digital asset management firm, estimates that the tokenization of RWAs could grow to $3.5 trillion by 2030 in a "bear case" and $10 trillion in a "bull case." The figure below provides a visual presentation of this growth, including the share of the market's subsegments.
- According to the report, based on data collected from Dune Analytics as of October 10, 2023, fiat-collateralized stablecoins hold the largest share (97%) of the tokenization market across Ethereum-compatible networks amounting to $69.13 billion, followed by commodities (1.3%), and government securities (0.95%).
- On the other hand, Citi estimates in their "Money, Tokens and Games" March 2023 report that the tokenization of financial and real-world assets will grow up to $5 trillion by 2030, with the private markets segment alone increasing by a factor of over 80x and accounting for $4 trillion of the projected market size.
- According to the report, non-financial corporate and quasi sovereign debt will account for $1.9 trillion of the market size, while real estate funds will account for $1.5 trillion of tokenized assets, private equity/venture capital will account for $0.7 trillion, securities financing and collateral will account for $0.5 — $1.0 trillion, and trade finance will account for $0.5 trillion of tokenized RWAs by 2030.
Technology Stack Requirement for Asset Tokenization
- A study conducted by Boston Consulting Group shows that the key capabilities needed across the digital stack for asset tokenization range from the engagement layer and connectivity to workflow management, data governance, data capture, client management, and infrastructure management.
- The table below provides a summary view of these requirements, including the core capabilities.
Tokenization Regulation Landscape
- The regulation landscape for tokenization varies from country to country, with some not having specific laws while others have banned, restricted with exceptions, or regulate the initial coin offerings (ICOs) or tokenization in general.
- The table below provides a summary view of the regulatory state of tokenization for the European Union, the United Kingdom, the United States, the United Arab Emirates, Germany, Austria, and Switzerland.
- The table below also provides a summary view of the regulatory state of tokenization for Singapore, HongKong, Japan, South Korea, India, China, and Russia. Security tokens in Singapore are regulated just as traditional securities.
The research team has utilized the most advanced research methodologies, such as generative AI-powered search, industry and research databases, and advanced web search techniques to facilitate our research. We leveraged the most reputable sources of information that were available in the public domain, including Boston Consulting Group, Galaxy, and Citi.
An exhaustive search through the public domain did not yield results on the market size and growth projection for the talent and personal brand segment of the RWA tokenization market. We first started by reviewing market research reports such as Allied Market Research and Emergen Research with the hopes of finding the market data for the talent and personal brand tokenization market. However, our search could not uncover both the market size and projected growth. Next, we sought for market data for the whole RWA tokenization market and the accompanying subsegments with the hopes of finding data for the talent and personal brand tokenization market as part of the segments. However, our review of the reports did not uncover the data since the reports have each categorized the market into various asset classes that did not profile relevant segments related to the market under review. Finally, we searched through various industry databases and news sites for relevant statistics that would enable a triangulation, such as intellectual property and social media branding but these too did not yield results as the data was unavailable. Therefore, we concluded that this data was not publicly available and provided the size of the RWA tokenization market as a whole as well the various segments under it as they were presented in the resource from where the data was obtained.
In the first three hours, we provided insights on the market dynamics for real-world asset (RWA) tokenization, including the market size and projected growth as well as regulatory and technological frameworks impacting this space. We suggest continuing the research to complete a deep dive on the regulatory and technological factors that influence this space as well as the additional research areas proposed.
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