#WealthTech

The Tokenisation of Assets: Rewriting the Rules of Wealth

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.

community.nasscom.in·1d ago