Tokenization of real-world assets (RWAs) has gained popularity, encompassing a wide variety of assets such as real estate, digital art, and government bonds. According to projections from Boston Consulting Group, the tokenization of illiquid assets worldwide is projected to become a $16 trillion industry by the end of the decade.
Recent data shows that the total value of tokenized RWAs reached an all-time high of $2.75 billion in August and remains at around $2.49 billion as of September 30.
Institutional investors are keen on investing in tokenized assets, with 91% expressing interest and 97% believing in the potential for tokenization to revolutionize asset management.
The trend is expected to drive exponential growth in the tokenized RWA sector, creating a more sustainable bull market with reduced capital flight at its peak.
Improved regulatory clarity in specific regions and successful pilot projects, as well as unsustainable yields in the decentralized finance (DeFi) sector, have contributed to the growing interest in the tokenization of RWAs.