The financial market is entering a new era with the rise of asset tokenization – Real World Asset (RWA). More than just a temporary technology trend, RWAs promise to fundamentally change the way assets are managed and traded globally.
From real assets to digital assets
The key point of tokenization lies in converting real assets (RWAs) such as bonds, real estate, or private equity into digital form on the blockchain. Unlike traditional cryptocurrencies (native tokens) like Bitcoin or Ethereum, RWAs tokens bridge the traditional and digital financial worlds, bringing liquidity and accessibility to inherently less flexible assets. .
The launch of the BUIDL tokenization fund by BlackRock, the asset management giant, in March 2023 is a clear demonstration of the potential of this trend. BUIDL attracted nearly 300 million USD in just one month, showing solid belief in RWA as the "next generation of the market".
Explosive growth and huge potential
The RWAs token market currently has a capitalization of 7.5 billion USD, a modest number compared to the huge scale of traditional finance of tens of thousands of USD. However, the rapid growth rate and the ever-expanding range of tokenized assets signal that a turning point is about to take place. Boston Consulting Group predicts that this market could reach $16 trillion by 2030, paving the way for the development of the decentralized finance (DeFi) ecosystem.
Trillions of dollars in new assets are created on blockchain, attracting a group of investors who prefer flexibility and direct access through e-wallets. A 24/7 ecosystem with lower barriers to entry than traditional finance is gradually changing the game.
Autonomy and transparency
The concept of “Bring your own wallet” represents the autonomy that blockchain gives to investors. BYOW eliminates custodial intermediaries, allowing investors full control and access to assets without the constraints of traditional institutions and delayed processing times.
Asset managers are aiming to exploit new sources of liquidity and price arbitrage between traditional and on-chain markets. This allows them to apply familiar investment strategies to the digital asset landscape, while also creating distribution opportunities for crypto investors
Asset tokenization is not just a trend, but an ongoing financial revolution that promises a more transparent, efficient, and accessible future for all.