Tokenizing Real-World Assets: A $30 Trillion Market Opportunity
Publication Time:2024-08-20 07:01:06
Colin Butler, the head of Global Institutional Capital at Polygon, emphasizes that the market for tokenized real-world assets (RWAs) holds significant potential, with an estimated size of $30 trillion. The involvement of investors such as high net worth individuals and private equity funds will accelerate adoption and proliferation in this field, thanks to the efficiencies brought by tokenization, such as higher liquidity and wider accessibility. According to analysis, the current market size for tokenized real-world assets has reached $11.66 billion and is expected to see substantial growth over the next few years. Among these, about $9 billion has been invested in tokenized private credit instruments, with companies like KKR and Hamilton Lane making strides in this area. Butler expects that hundreds of billions of dollars of tokenized private assets will be issued over the coming years. Currently, there are approximately $1.16 billion worth of tokenized RWAs held on blockchain networks, with money market funds like the BlackRock USD Institutional Digital Liquidity Fund and the Franklin OnChain U.S. Government Money Fund being particularly popular.
Tokenization
Real-world Assets
Market Opportunity
High Net Worth Individuals
Private Equity Funds