With the adoption of cryptocurrencies in the market, many innovations have emerged in the financial sector, especially in 2021, thanks to blockchain technology. One of these innovations, the tokenized real world asset (RWA) market, has emerged as a serious scam method for investors. However, according to a statement by Boston Consulting Group, steps that can be taken in the RWA market could establish a $16 trillion industry by the end of the decade.
Increasing Interest in the RWA Industry
Recently, various asset categories are actively being tokenized and attracting investments. Moreover, recent data also shows that the total value of tokenized real world assets reached its all-time high in August. Accordingly, the RWA sector, with a market value of up to $2.75 billion, has since experienced a downward trend and remained at around $2.49 billion as of September 30.
According to a joint research conducted by research and consulting firm Celent and American banking giant BNY Mellon, 91% of institutional investors are interested in investing in tokenized assets. 97% of these investors believe that there will be a revolution in the field of tokenized asset management.
So, What Can Happen in the RWA Field?
Matthijs de Vries, co-founder of AllianceBlock, who is working on providing decentralized tokenized market services, said in a statement that such statistics provide an idea about the potential effects of institutional investments on the sector:
“This trend is expected to result in exponential growth in the tokenized RWA industry, especially as more liquidity flows into the sector. This will lead to a more sustainable bull market with less capital flight at its peak.”
The growth of the RWA sector, the increase in regulatory clarity in certain jurisdictions like Switzerland, and successful pilot projects continue to gain momentum. De Vries stated that unsustainable yields in decentralized finance platforms, which led to the collapse of many major crypto projects in 2022, have prompted investors to seek sustainable and real returns, just like in the tokenized RWA sector:
“Investors are now looking for transparent explanations of these yields, which makes tokenized RWAs more attractive due to their clear sources of return and greater recognition by traditional players.”
