Why Asset Tokenization Is Inevitable

Currently, on-chain RWAs report a $7.5 billion market. While this might seem marginal relative to the tens of trillions of dollars advantage of assets managed traditionally, the pace of growth and the increasing range of assets being tokenized — including treasuries, commodities, secret equity, real estate, private credit, and others — suggest a tipping point. A 2022 Boston Consulting Group circulate estimated that the market for tokenized assets could grow to $16 trillion by 2030, which would greatly franchise DeFi protocols catering to these assets to develop entire new financial ecosystems across lending, liquidity pools, days and derivatives, and other markets.