Tokenized Assets Market Surpasses $30 Billion with U.S. Treasuries as Main Driver

The growth of tokenized assets has been rapid in recent years, with the market size surpassing $30 billion and stabilizing around $34 billion (excluding stablecoins). This scale is equivalent to that of a regional bank or a top university endowment fund. The increase in tokenized asset market value is primarily driven by U.S. Treasuries, which offer advantages such as efficient trading and flexible holding.

Asset-backed credit assets have also seen significant growth, with home equity credit line tokens, lending vault tokens, reinsurance contracts, and unique financial assets like Bitcoin mining receipts contributing to the expansion. The market share of tokenized assets is highly concentrated, with gold tokens dominating the commodity sector at $5.1 billion.

Despite the growth, most tokenized assets lack 'composability,' which enables them to be used as freely combinable and reusable financial building blocks. Only a small percentage of tokenized assets are applied to DeFi protocols, indicating that the industry is still in its early stages. The infrastructure for on-chain composability technology is complete, but deeply integrated applications are just beginning.

The long-term growth potential of the tokenized asset market is significant, with estimates ranging from $2 trillion to $18.9 trillion by 2033. However, the current scale remains minuscule compared to the global financial landscape, highlighting the need for deeper integration and application of tokenized assets in on-chain finance.