Tokenized Assets Grow to $227 Billion... But Risks Remain

# Stablecoins Dominate Tokenized Real-World Asset Market Surpassing $227 Billion Stablecoins have emerged as the most critical component in the realm of tokenized real-world assets (RWA), with the market size exceeding $227 billion, according to a report by Cointelegraph on October 27. Following closely behind is the private credit market, valued at over $12.2 billion. Tracy Jin, Chief Operating Officer (COO) of MEXC, a cryptocurrency exchange, cautioned about the significant centralized risks associated with the tokenization of real-world assets. These risks include censorship, liquidity challenges, legal uncertainties, cybersecurity issues, and the potential seizure of assets through government or third-party intermediaries. In an interview with Cointelegraph, Jin remarked, “As long as tokenized assets remain under the control of national regulators and centralized intermediaries, tokenization is merely a new version of the existing financial infrastructure, not a financial revolution.” She further explained that “most tokenized assets will either be restricted to limited access or issued on semi-centralized blockchains, granting authorities the power to restrict or seize assets.” Jin concluded that the tokenization of assets such as real estate or bonds remains inherently tied to the legal frameworks of individual nations. Jin also stated that the risk of asset confiscation becomes heightened if the underlying asset or issuing company is situated in jurisdictions with unstable legal environments or high political volatility. # RWA Tokenization Projected to Expand to Multi-Trillion-Dollar Market by 2030 Over the next decade, the global asset market is expected to undergo significant transformation as tokenization leverages blockchain technology. Experts believe the market for tokenized real-world assets could grow into a multi-trillion-dollar industry. This trend is anticipated to increase the velocity of capital circulation while broadening the scope of global capital markets. Tokenized real-world assets encompass a wide array of asset classes, including equities, bonds, real estate, intellectual property, energy resources, artwork, private credit, debt instruments, fiat currencies, commodities, and collectibles. According to RWA.XYZ, the on-chain tokenized RWA market, excluding the stablecoin sector, is currently valued at over $19.6 billion. Meanwhile, the stablecoin market has already surpassed $200 billion as of December 2024. A research survey by Tranch Finance, which involved major financial institutions such as Citigroup, Standard Chartered, and McKinsey & Company, projects that the RWA market could grow to $4 trillion to $30 trillion by 2030. McKinsey & Company offered a relatively conservative forecast, estimating that the RWA market will reach between $2 trillion and $4 trillion by 2030. On the other hand, executives from Standard Chartered and Polygon, a prominent blockchain network, foresee the market scaling to $30 trillion within the next decade.