Ripple Says Business Opportunity For Tokenized Assets to Reach $16T By 2030

California-based blockchain company Ripple Labs eyes the massive business opportunity for the tokenized assets sector.

Real World Asset (RWA) tokenization is among the few crypto sectors that have experienced significant growth and attention.

According to Ripple’s 2023 New Value report, the cryptocurrency behemoth is bullish on the broader business impact of tokenized assets.

Tokenized Assets to Reach $16T By 2030

The leading California-based blockchain company Ripple cited data from the Boston Consulting Group (BCG), which predicts enormous growth for the Tokenized Assets industry by 2030.

Ripple noted that BCG expects the business opportunity for tokenized global illiquid assets to spike to a whopping $16T.

Ripple also highlighted that 72% of finance decision-makers are expected to explore tokenization to bolster innovation over the next three years. The California-based blockchain company also made this known in a tweet yesterday. 

Ripple Plans to Transform Real Estate Industry Via Tokenization

Interestingly, Ripple Labs is already positioning itself to benefit from the business opportunity of tokenized assets. Last week, Ripple’s CBDC Advisor Anthony Welfare disclosed the company’s plans to revamp the real estate industry through tokenization. 

Notably, the program is part of Hong Kong’s Monetary Authority CBDC pilot program, which Ripple joined in May. Under the program, Ripple partnered with Hong Kong-based Fubon Bank to provide solutions for real estate tokenization.  

Meanwhile, Ripple CEO Brad Garlinghouse believes blockchains like the XRP Ledger (XRPL) can transform the real estate industry. As reported by The Crypto Basic earlier, Garlinghouse highlighted a major discrepancy between traditional payment processing in real estate and the solutions offered by blockchain.

He added that blockchains like XRPL can facilitate transactions between parties in real estate without explicit trust. Interestingly, Ripple is not a new player in providing solutions for real estate users.

Last year, Ripple collaborated with Portugal-based real estate company ProprHome in a bid to give clients new ways to buy, sell, and rent properties in the country.

Ripple’s focus on real estate is not surprising, given the enormous business opportunities associated with the sector. Citing Bloomberg data, Ripple stated that roughly $4T is locked in private equity and real estate.

Tokenized Assets

For context, asset tokenization is the creation of digital tokens that represent the ownership rights of real-world assets. It is worth noting that real-world assets like bonds, real estate, and stocks can be tokenized on the blockchain. These tokenized assets offer improved efficiencies compared to traditional market infrastructures.

Data from RWA.xyz shows that the market cap of tokenized US treasuries, bonds, and cash equivalents currently stands at $621.73M.