Real-World Asset Tokenization Market Reaches $24 Billion This Month
The real-world asset (RWA) tokenization market reached $24 billion, growing by 380% over three years, signaling traditional finance's adoption of blockchain technology, per a report from RedStone, Gauntlet, and RWA.xyz.
Key findings include:
- Asset tokenization is transitioning from experimental phases to institutional adoption in 2024-2025.
- Tokenization involves converting assets like stocks and bonds into blockchain tokens for trading, aiming to reduce costs and inefficiencies.
- Market projections vary significantly, with estimates ranging from $2 trillion (McKinsey) to $30 trillion (Standard Chartered) by 2034.
- Notable projects include BlackRock's $2.9 billion BUIDL fund and Apollo's ACRED private credit tokenization.
- Tokenized Treasuries could enhance U.S. dollar dominance and aid government financing.