Tokenisation of real-world assets (RWAs) is a growing trend in fintech, projected to become a $16 trillion industry by 2030. Tokenisation involves placing ownership of tangible assets like equities and real estate onto blockchain ledgers, enabling 24/7 trading and significant liquidity. Major banks, including JPMorgan, are already leveraging digital tokens for transactions. The benefits include lower transaction costs, transparency, reduced intermediary fees, and automated asset functionalities. While the market is evolving, success with mainstream assets like currencies and stocks is crucial, with central bank digital currencies (CBDCs) poised to drive further adoption. The establishment of supporting protocols and marketplaces will enhance the ecosystem of tokenised assets.
| name | description | change | 10-year | driving-force | relevancy |
|---|---|---|---|---|---|
| Surge in Tokenised Gold Market | Tokenised gold market surpassed $1bn in 2023, indicating growing acceptance. | Shift from traditional gold ownership to tokenised forms of gold. | Tokenised gold may become a standard investment choice, accessible globally. | Desire for liquidity and 24/7 trading in asset markets. | 4 |
| Tokenisation Industry Growth | Tokenisation of real-world assets projected to reach $16tn by 2030. | Transitioning from traditional asset ownership to digital token ownership. | Mainstream adoption of tokenised assets across various industries. | Increased efficiency and reduced costs in asset transactions. | 5 |
| Institutional Interest in Tokenisation | 72% of global asset managers plan to develop tokenisation solutions. | From traditional asset management to innovative token-based strategies. | Rise of tokenisation as a core strategy for institutional asset management. | Pressure to innovate and reduce costs in asset management. | 5 |
| JPMorgan’s Digital Token Trade | JPMorgan executed its first live trade using digital tokens in 2022. | Shifting from traditional currency transactions to digital token transactions. | Increased use of digital tokens in banking and finance transactions. | Need for faster and more efficient transaction methods. | 4 |
| California’s Blockchain Pilot | California announced a pilot using blockchain for DMV identification in 2023. | Moving from traditional identification methods to blockchain-based solutions. | Broader adoption of blockchain for secure identification across sectors. | Growing emphasis on security and efficiency in public services. | 3 |
| Rise of CBDCs | 90% of world nations pilot CBDC programmes for digital asset tokenisation. | Transitioning from fiat currency to digital tokenised forms. | Widespread acceptance of CBDCs as a norm in global finance. | Governments seeking to modernize and secure financial systems. | 5 |
| Expansion of Supporting Financial Instruments | Development of protocols and marketplaces for tokenised assets is underway. | From limited asset trading to a comprehensive ecosystem for tokenised assets. | Diverse financial instruments and use cases emerge around tokenised assets. | Innovation in financial markets driven by blockchain technology. | 4 |
| name | description | relevancy |
|---|---|---|
| Market Vulnerabilities in Tokenisation | The rapid growth in tokenised assets may expose financial markets to new vulnerabilities and risks that are yet to be fully understood. | 4 |
| Regulatory Challenges | The rise of tokenised assets may outpace regulatory frameworks, leading to potential misuse, fraud, or market manipulation. | 5 |
| Dependence on Blockchain Technology | Reliance on blockchain technology could pose risks if major vulnerabilities or technical issues arise within the infrastructure. | 4 |
| Intermediary Displacement | The reduction of intermediaries could disrupt traditional financial institutions, leading to unforeseen economic impacts and job losses. | 3 |
| Market Inequality | Tokenisation could reinforce economic inequalities if access to digital assets is limited by technology or financial literacy barriers. | 4 |
| Cybersecurity Concerns | Increased digitization of assets heightens the risk of cyberattacks and data breaches, compromising asset security. | 5 |
| Privacy Issues | The transparency of blockchain technology might conflict with privacy concerns, particularly in sensitive financial transactions. | 4 |
| Innovation vs. Stability | The push for innovation in tokenisation may come at the cost of market stability if not carefully managed. | 4 |
| name | description | relevancy |
|---|---|---|
| Tokenisation Adoption | Businesses are increasingly adopting tokenisation of real-world assets to enhance liquidity and flexibility in financial transactions. | 5 |
| Increased Market Liquidity | Tokenisation is unlocking liquidity from previously illiquid asset classes, enabling smoother transactions and market access. | 5 |
| Decentralised Financial Transactions | Companies are utilizing blockchain technology for direct transactions, reducing the need for traditional brokers and intermediaries. | 4 |
| Programmability of Assets | Tokenised assets allow for programmable features, such as automated dividend payments and smart contract functionalities. | 4 |
| Institutional Momentum | A significant percentage of global asset managers are planning to develop tokenisation solutions, indicating institutional belief in its potential. | 5 |
| Emergence of CBDCs | Central Bank Digital Currencies are being piloted globally, signaling a pivotal shift towards widespread tokenisation of fiat currencies. | 5 |
| Creation of New Financial Instruments | The rise of tokenised assets is expected to lead to the development of new financial instruments and novel use cases in finance. | 4 |
| Enhanced Transparency and Security | Blockchain technology provides transparency and immutability in asset transactions, enhancing security and trust. | 4 |
| description | relevancy | src |
|---|---|---|
| The process of placing ownership of tangible assets on blockchain ledgers as digital assets, enhancing liquidity and flexibility. | 5 | 2e03cb7422c61952f399081a83d807d3 |
| A decentralized ledger technology that provides transparency, immutability, and reduces costs in asset management and transactions. | 5 | 2e03cb7422c61952f399081a83d807d3 |
| Digital asset tokenizations of fiat currency being piloted by various nations, indicating a shift towards digital finance. | 5 | 2e03cb7422c61952f399081a83d807d3 |
| Creation of new financial instruments like derivatives that are supported by the tokenisation process, enhancing market functionality. | 4 | 2e03cb7422c61952f399081a83d807d3 |
| name | description | relevancy |
|---|---|---|
| Tokenised Assets Growth | The rapid increase of tokenised assets in global markets and their potential to become a $16tn industry by 2030. | 5 |
| Financial Innovation through Tokenisation | Increased interest from global asset managers in developing tokenisation solutions to drive financial innovation by 2026. | 4 |
| Liquidity and Flexibility of Assets | Enhanced liquidity and flexibility of traditional assets due to tokenisation, impacting transaction costs and market access. | 5 |
| CBDC Impact on Tokenisation | Central Bank Digital Currencies (CBDCs) may catalyze the widespread adoption of tokenised assets, marking a significant shift in financial systems. | 5 |
| Protocols and Marketplaces for Tokenised Assets | Development of new protocols and marketplaces to support the creation and exchange of tokenised assets. | 4 |
| Programmability and Automation of Assets | Tokenisation introduces new functionalities for assets such as automated dividend payments and enhanced ownership transparency. | 4 |
| Tokenisation Across Various Industries | Potential for tokenisation to transform various sectors like real estate, automotive, and consumer goods, broadening its application. | 4 |