Asset tokenization has been gaining momentum in recent years, with major financial institutions launching their own tokenized fund products. BlackRock, JPMorgan, Goldman Sachs, and Franklin Templeton have all entered the market, signaling that asset tokenization is becoming a mainstream phenomenon.
The technology behind tokenization allows for the representation of real-world assets as digital tokens on a blockchain. This enables fractional ownership and tradeability 24/7, reducing minimum investment sizes and speeds up settlement. The blockchain serves as the record of ownership, while smart contracts automate compliance checks, dividend distributions, and transfer restrictions.
The growth of asset tokenization is expected to unlock $16 trillion in value by 2030, according to a report by Boston Consulting Group and ADDX. This projection assumes that 10% of global GDP will be tokenized by 2030. The breakdown includes $5 trillion in tokenized real estate, $4 trillion in fixed income and funds, $3 trillion in private equity and venture capital, $2 trillion in commodities, and $2 trillion in other asset classes.