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Boston Consulting Group Predicts $55 Trillion Tokenized Real-World Assets by 2055: Can It Help Cryptocurrency Market?
TL;DR
Boston Consulting Group forecasts that tokenized real-world assets could reach a $14 trillion market by 2030 and $55 trillion by 2035. This shift is expected to significantly impact the financial system, including various asset classes.
Key points
- Tokenized real-world assets could reach $14 trillion by 2030
- Market size may grow to $55 trillion by 2035
- Tokenization will significantly impact various asset classes
Tokenized real-world assets could develop into a $14 trillion market by 2030 and eventually reach $55 trillion by 2035, according to BCG projections. According to that prediction, tokenization would rank among the biggest structural changes in the current financial system, affecting bonds, commodities, private credit, stocks, and other assets.
Instituionalization of the field
There is increasing pressure on conventional asset managers. While profit margins hardly change, assets under management are still growing globally. Institutional products became more commoditized, passive investing reduced fees, and competition grew more fierce.
Distribution is turning into the primary battleground in that setting. BCG makes the straightforward claim that companies with control over investor access will rule the financial industry in the coming years.
Source: Boston Consulting Group, via Centrifuge
The source of capital flows is also rapidly shifting at the same time. Approximately 61% of the growth in global AUM between 2020 and 2025 will come from retail investors. With an annual growth rate of almost 9%, Asia-Pacific is also growing more quickly than any other region. This combination is important because tokenization is most effective in markets that want more access, fractional ownership, quicker settlement, and global liquidity.
Blockchain rails are already being used in pilot programs and institutional experiments for government bonds, corporate debt, private credit, commodities, and even structured products. Tokenization facilitates 24/7 trading, lowers settlement friction, enhances transferability, and may open markets that were previously closed to smaller investors.
More opporutnities for yield generation
Private credit could end up being one of the main winners. Insurance companies are looking for yield-generating instruments more and more, and blockchain technology makes it possible for those assets to transfer between institutions and secondary markets more effectively.
Q&A
What is the projected market size for tokenized real-world assets by 2030?
The projected market size for tokenized real-world assets is $14 trillion by 2030.
How will tokenization affect the financial system by 2035?
Tokenization is expected to be one of the biggest structural changes in the financial system, impacting bonds, commodities, and stocks.
What challenges are conventional asset managers facing according to BCG?
Conventional asset managers are facing increasing pressure due to commoditization of products, reduced fees from passive investing, and heightened competition.
