The global digital assets market, including cryptocurrencies like XRP, is projected to account for up to 10% of all assets by 2030, potentially reaching a valuation of over $14.5 trillion, driven by factors such as the growing adoption of cryptocurrencies, stablecoins, and central bank digital currencies, as well as regulatory certainty and institutional investor interest. Pro-XRP analysts suggest that XRP could become the next big thing in the financial market, with the potential for significant returns, especially considering Ripple's efforts to expand its use cases and accommodate tokenized assets.
Former Goldman Sachs executive Raoul Pal predicts that institutional investment in cryptocurrencies will drive the total market cap to over $10 trillion, more than triple its peak in 2021, as financial institutions follow the lead of family offices in entering the crypto space.
Tokenization of real-world assets on the blockchain is rapidly gaining momentum, offering benefits such as transaction speed, liquidity, cost-savings, and round-the-clock access, with experts predicting it to become a $16 trillion industry by 2030. Over 70% of financial leaders expect to use tokenization in their businesses, with potential impacts on asset trading, real estate transactions, derivatives, and carbon markets. Tokenization unlocks liquidity, enhances security and data protection, reduces transaction costs, and enables programmability and automation, making it a key driver of digital asset adoption and a fundamental shift in business operations.
Bitcoin is predicted to reach a price of $148,000 after the next halving in April 2024, according to Pantera Capital, which manages $3.5 billion worth of assets, and notes that recent events such as the XRP ruling and endorsements by BlackRock are likely to contribute to the next bull market for digital assets.
Tokenization has the potential to improve efficiency, liquidity, and transparency in bond markets, according to a report by the Hong Kong Monetary Authority (HKMA), following a successful $100 million tokenized green bond issuance in collaboration with the local government.
The demand for illiquid assets is increasing as investors seek higher returns, with tokenization playing a role in enabling this shift, according to experts at a recent event, while surveys indicate that younger generations have a desire for more investment choices. Tokenization is seen as a way to democratize access to investment opportunities by lowering costs and allowing for fractional ownership, which can expand the investor base and generate greater liquidity. Additionally, Generation Z is driving the demand for tokenization and expects more personalized investment options.
Tradeteq, a U.K.-based marketplace for private debt and real-world assets, has launched tokenized U.S. Treasury bonds on the XDC Network, with experts predicting that tokenization of real-world assets could become a $5 trillion market.
The Shiba Inu token, currently trading with five zeroes, presents an affordable investment opportunity for average investors, with the potential for significant returns if it reaches $0.01 in the future. However, it should be noted that reaching the $1 million mark in profits would require an investment of $800.
The global financial services market is expected to reach $37,484.37 billion by 2027, driven by evolving consumer needs, technological advancements, and regulatory changes, according to reports from The Business Research Company.
The Tokenized Asset Coalition, consisting of industry leaders such as Coinbase and Circle, aims to promote the tokenization of traditional financial assets on a blockchain to bring the "next trillion dollars of assets" on-chain through education, advocacy, and fostering adoption of public blockchains and decentralized finance.
The trading volume of AI tokens showed a moderate increase last month, reaching around $870 million, despite controversy surrounding Worldcoin's launch, but there was a significant decrease compared to the beginning of the year.
The appetite for tokenizing real-world assets on blockchains is growing, with both financial incumbents and crypto native players getting involved, and smaller participants such as retail users and businesses are now able to access these assets for remittances, savings, and payments.
The Federal Reserve has released a paper discussing the benefits of tokenizing real-world assets on blockchains, stating that it has the potential to provide access to otherwise inaccessible markets and improve liquidity.
Around 30 cryptocurrency projects are set to release over $200 million worth of tokens in October, with six projects accounting for nearly 80% of the release, according to Token Unlocks data.
Swiss tokenization firm Backed Finance has launched the first real-world asset token on Coinbase's Base blockchain, offering a blockchain-based version of BlackRock's short-term US Treasuries ETF, with a 5.25% annual yield, to qualified investors and licensed distributors.
