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Real-world asset (RWA) tokenization is emerging as a transformative force, with projections indicating it could reach over $600 billion in assets under management (AUM) by 2030. According to an October 29 report from Boston Consulting Group (BCG), in collaboration with Aptos Labs and Invesco, RWA tokenization has the potential to capture 1% of the global mutual fund and exchange-traded fund (ETF) market over the next seven years.
BCG Managing Director David Chan noted the growing appetite among investors for tokenized assets, with fund inflows accelerating as confidence builds in blockchain-based finance.
The push toward tokenized assets is driven by a wave of on-chain innovations, including stablecoins and central bank digital currencies (CBDCs). BCG’s report describes this shift as “the third revolution in asset management,” underscoring the fundamental changes blockchain technology could bring to traditional finance.
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Bond Market Leads in Tokenization Potential
State Street Global Advisors, a major U.S. investment firm, also weighed in on the asset tokenization trend, particularly regarding bonds. According to their research, bonds are prime candidates for tokenization due to their recurring issuance costs and structural complexity.
State Street’s head of macro policy research, Elliot Hentov, emphasized that bonds’ built-in maturity and complexity are factors that make them suitable for blockchain adaptation. Tokenization would enable these assets to be issued and traded with reduced intermediary costs, automating previously cumbersome processes with smart contracts.
State Street’s October report identified key markets—such as repos and swaps—that would benefit from the rapid transaction capabilities of blockchain, positioning them for early adoption. While bond tokenization holds the most promise, private equity funds are also seen as ripe for transformation, though public equities, working well under current systems, are expected to see lower adoption of blockchain technology.
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Challenges and Future Growth in RWA Tokenization
Despite the positive outlook, the Financial Stability Board’s recent study noted that RWA adoption is still in its early stages, with limited use in government debt and select commodities. According to industry analytics platform rwa.xyz, however, the sector is gaining momentum, with RWA value on-chain rising by 60% in 2024 alone.
With increasing research and institutional interest, tokenized assets may soon represent a significant part of the global asset portfolio. They would provide opportunities for efficiency, transparency, and lower costs across the financial sector.
