As more institutions explore blockchain-based finance, some industry leaders say tokenized real-world assets (RWAs) may surpass $30 trillion by the 2030s.

The tokenization of real-world assets (RWAs) is emerging as a transformative trend in the financial sector. Leading institutions, like Standard Chartered Bank and Synpulse, are optimistic, forecasting that the market could surpass $30 trillion by the 2030s. This sentiment was echoed at the recent Paris Blockchain Week, where industry leaders convened to discuss the future implications of tokenization. Notably, the panel featured Michael Sonnenshein, COO of Securitize, who was more skeptical of these projections, emphasizing that traditional investment systems today are sufficient and expressing concerns about tokenizing real estate. He posited that while there's potential for liquid assets in blockchain, real estate ownership may not translate effectively in this realm. The UAE’s efforts to integrate tokenization with real estate underscore the global interest in this space, although not everyone is sold on its viability. The challenging regulatory landscape and the existing reliance on traditional structures present hurdles in the mainstream adoption of tokenization, as highlighted in a recent report by the Boston Consulting Group. This shift toward digital finance is not merely about asset ownership; it's about redefining how we view and interact with investments in a rapidly evolving market. While the optimism is palpable among many industry veterans, analytical caution seems prudent. The future may hold considerable promise, but overcoming barriers such as regulatory uncertainty and infrastructural fragmentation will be crucial for realizing the projected growth of tokenized assets.