We have undoubtedly seen the rise of RWA tokenisation in 2024. Not only does it signify a bridge between TradFi and the digital asset space for crypto natives, it also opens up the crypto world to many new users and products.
Various institutions have taken their first steps to jump on the bandwagon of tokenisation to find new opportunities for yield. For example, BlackRock’s recent BUIDL. While there are still limitations in the investor base, scope, and transferability in these tokens, we believe the target is clear — to bring in more assets, users, and efficiency. We expect to see continued growth and new products to satisfy users’ different demands — higher-yielding credit products or equities, for example.
Additionally, we will also see the increasing integration of RWAs into stablecoins, where more physical assets can be actively sought after collateral — giving rise to yield-bearing stablecoins, which can act as both safe-haven on-chain assets and provide real yield. Meanwhile, RWA assets could be boosted in the multi-chain world with the maturity of cross-chain communication.
RWAs are clearly a trend right now with the potential for mass adoption. The sector is forecasted to be a $16 trillion market by 2030, according to a Boston Consulting Group study. Meanwhile, Citi has also forecast that, by 2030, there will be $4- 5 trillion of tokenised securities. This represents an immense growth opportunity from where we are now.