Tokenization of real-world assets (Real World Asset Tokenization - RWA) is becoming a focal trend in traditional finance (TradFi), with a projected total value reaching 50 billion USD by 2025. This transformation not only revolutionizes the way assets are managed and traded but also opens new opportunities for major financial institutions.
What is tokenization of real assets?
#RWA Tokenization turns traditional assets like real estate, bonds, or private credit into digital tokens on the blockchain. This makes illiquid assets more tradable while optimizing management and compliance processes.
Thanks to tokenization, organizations can:
• Fractional ownership of assets.
• Automating compliance processes.
• 24/7 market access.
The impressive growth and role of major institutions
According to the Tokenized Asset Coalition report (#TAC ), the total value locked (TVL) in tokenized assets exceeded 176 billion USD in 2024, an increase of 32% compared to the previous year.
Major institutions such as BlackRock have driven this trend. From launching a tokenization fund in March 2024, to adopting stablecoins and blockchain-based financial services, BlackRock is seen as a 'trailblazer' in the RWA space.
Forecasts from major financial institutions:
• Standard Chartered: Predicts that tokenized assets will reach 30 trillion USD by 2034.
• Boston Consulting Group: Estimates the value of tokenized assets will reach 16 trillion USD by 2030.
Prominent and innovative platforms in RWA
Clearpool, a decentralized credit platform, is developing Ozean, a protocol focused on RWA. In its Q4 2024 report, Clearpool stated:
• The protocol processed over 650 million USD in loan value in Q4 2024, a 51% increase in TVL.
• The Ozean protocol attracted over 368,000 trial accounts on the Poseidon testnet.
Currently, the main applications of RWA include tokenized bonds and stablecoins, but the future promises expansion into real estate, private credit, and commodities.
The benefits of tokenization for traditional finance
Tokenization offers many benefits:
• Higher liquidity: Turning illiquid assets into easily tradable ones.
• Transparency: Every transaction can be tracked on the blockchain.
• Automation: Reduces operational costs and speeds up processing.
• Fractional ownership: Opens up investment opportunities for many people.
The push from politics and regulation
Political changes in the US also drive tokenization. Donald Trump appointed Paul Atkins, a blockchain expert, as the head of the SEC. This is a positive signal expected to bring regulatory transparency and encourage the participation of financial institutions in the RWA space.
Conclusion
Tokenization of real assets is changing the way the financial world operates, creating a bridge between traditional assets and blockchain. With the participation of major institutions like BlackRock, Clearpool, and supportive policies, the RWA market has the potential to become a dominant trend in the coming years.
Risk warning: The cryptocurrency market is volatile and risky. Investors need to do thorough research before participating. #anhbacong