Crypto News- Real-World Asset Tokenization: Could $1.3 Trillion Be the Real 2030 Target?

Crypto News- Is the $30 Trillion Prediction for Tokenized Real-World Assets by 2030 Achievable?

Crypto News– As the buzz around tokenized real-world assets (RWAs) continues to grow, a leading crypto analyst has expressed skepticism about the bullish prediction that these assets could be worth $30 trillion by 2030. Jamie Coutts, the chief crypto analyst at Real Vision, suggests that a more realistic target would be just 5% of that amount.

Is $1.3 Trillion by 2030 a More Realistic Goal for Tokenized Assets?

In an August 27 post on X, Coutts argued that if the current 2-year compound annual growth rate (CAGR) of 121% continues, tokenized traditional assets might only reach around $1.3 trillion by 2030. The process of tokenizing assets involves issuing security tokens—blockchain-based tokens representing real, tradable assets like real estate, bonds, art, and stocks.

Wall Street’s $30 Trillion Prediction: Too Optimistic?

In contrast, a June report from Standard Chartered Bank and Synpulse forecasted that tokenized RWAs could hit $30.1 trillion by 2034. However, Coutts believes this outlook is overly optimistic. Even with a more conservative estimate of $1.3 trillion, the impact on the Web3 ecosystem could still be significant if this projection materializes.

How Could $1.3 Trillion in Tokenized RWAs Affect the Crypto Ecosystem?

Coutts suggests that having $1.3 trillion in real-world assets on the blockchain could trigger a massive flywheel effect on other sectors within the crypto space, including non-fungible tokens (NFTs), social platforms, and gaming.

The Implications for Ethereum: Can L2 Networks Steal the Show?

The question then arises: What does this mean for Ethereum? According to Coutts, the “value accrual” on Ethereum—the go-to platform for early traditional finance (TradFi) asset issuers—could be challenging to estimate. He highlights that layer-2 (L2) networks might capture 95-99% of the revenue, leaving only a small portion for the base Ethereum network as settlement costs. Coutts believes L2s are unlikely to relinquish their revenue streams, making it difficult for Ethereum to scale its Layer 1 (L1) network.

Tokenized Financial Assets: A $2 Trillion Market by 2030?

Despite the hurdles, consulting firm McKinsey & Company reported in June that tokenized financial assets are on track to reach a market size of about $2 trillion by 2030. Although these assets have had a cold start, McKinsey analysts believe that the sector needs a use case that offers clear benefits over traditional finance systems.

The Future of Tokenized Bonds: A Game-Changer for Finance?

One promising area is the tokenization of bonds. McKinsey notes that hardly a week passes without the announcement of a new tokenized bond issuance. This trend underscores the growing interest and potential of tokenized financial assets in reshaping traditional finance.

RippleX’s Take: A $16 Trillion Market by 2030?

Adding to the conversation, RippleX’s senior vice president, Markus Infanger, told Cointelegraph in April that research estimates suggest the future value of tokenized markets could reach $16 trillion by 2030. This figure is approximately eight times larger than the current total market capitalization of the entire cryptocurrency sector, pointing to the immense potential of tokenized assets in the coming years.