Chainlink Report Predicts Tokenized Asset Market to Reach $10 Trillion by 2030

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Chainlink, a leading decentralized oracle provider, has published an insightful report projecting that the global tokenized asset market could expand to a staggering $10 trillion by 2030.

This forecast comes at a pivotal time when institutional adoption and regulatory advancements are propelling the rise of tokenized assets, even amid the volatility plaguing cryptocurrency markets.

Institutional Momentum and Regulatory Growth Power Tokenization: Chainlink

The Chainlink report, which draws from findings in a 21.co report and a collaborative study by Boston Consulting Group (BCG) and digital securities exchange ADDX, highlights the immense potential of asset tokenization. These reports suggest that the tokenized asset market could surge to between $10 trillion and $16 trillion by the end of this decade.

Also read: U.S. Crypto Progress Stalled Despite Global Momentum, Says Ripple Executive

According to Chainlink, tokenization offers the ability to “bring liquidity to historically illiquid assets,” such as real estate and private equity, by converting these traditionally static assets into “digital on-chain tokens.” By doing so, tokenized assets become more accessible and easier to integrate into the operations of financial institutions.

Current Market Overview and Ethereum’s Dominance

As of now, the total value of tokenized assets sits around $118.57 billion, with Ethereum maintaining a dominant position in the market, controlling approximately 58% of all tokenized assets.

The report also outlines several key initiatives that are fostering the growth of tokenization, including Singapore’s Monetary Authority’s (MAS) Project Guardian, which aims to pilot the blockchain-based tokenization of bonds and deposits under regulatory oversight.

Market Drivers and Projected Growth

Institutional interest and supportive regulatory frameworks are the primary forces fueling the rapid growth of tokenized assets. Ethereum’s more than 6 million daily active users (DAUs) further exemplify how blockchain technology is already playing a vital role in the expansion of the tokenized asset market.

Chainlink’s report cites a survey conducted by BNY Mellon and Celent, in which 97% of institutional investors agreed that tokenization will “revolutionize asset management.” Additionally, the World Economic Forum (WEF) estimates that as much as $867 trillion of value stands to be disrupted by the rise of asset tokenization.

While the outlook remains overwhelmingly positive, several challenges still exist on the path to the predicted $10 trillion market valuation. Issues such as audit standards, asset valuation, and regulatory compliance continue to pose barriers. The ongoing legal battles between crypto firms like Coinbase and the United States Securities and Exchange Commission (SEC) serve as a reminder that regulatory hurdles are still significant for the industry.

Nonetheless, Chainlink’s report paints a promising picture for the future of tokenization, suggesting that the sector is on a clear trajectory toward unprecedented growth.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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