The Tokenisation of Assets: Rewriting the Rules of Wealth
Infrastructure
The tokenization of real-world assets is transforming global wealth markets by addressing inefficiencies like high entry barriers and limited liquidity in private equity, real estate, and private credit. By utilizing SPVs and smart contracts, tokenization enables fractional ownership, with market projections estimating a valuation between $2 trillion and $16 trillion by 2030. Recent data highlights significant momentum, including an 85% year-over-year growth in the RWA market during 2024, with tokenized private credit rising 82% and U.S. Treasuries increasing 114%. This shift is supported by maturing blockchain infrastructure and emerging regulatory frameworks in hubs like GIFT City, Singapore, and Switzerland. WealthTech platforms and robo-advisors are now integrating these assets to offer diversified exposure, though they must navigate challenges regarding valuation, secondary market liquidity, and regulatory fragmentation. Institutional adoption is expected to provide the necessary scale and operational discipline to move the industry from exploration to execution. Ultimately, this evolution represents a fundamental reconfiguration of capital deployment, moving toward a more accessible and efficient financial ecosystem.
Key points
- ▸Tokenized asset market grew 85% year-over-year in 2024, per industry reports.
- ▸Tokenized private credit rose 82% and U.S. Treasuries grew 114% annually.
- ▸Market potential is estimated between $2 trillion and $16 trillion by 2030.
- ▸Regulatory frameworks in GIFT City and global hubs are enabling fractional ownership models.
Background
Tokenization involves placing physical or financial assets into a Special Purpose Vehicle (SPV) and issuing digital tokens on a blockchain to represent proportional ownership. These tokens are governed by smart contracts that automate compliance and record-keeping, effectively replacing fragmented traditional registries. This process allows traditionally illiquid assets to be divided into smaller, tradable units, facilitating broader investor access.
Relevance
7/10