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Unlocking the Future: How Tokenized Real-World Assets Are Set to Revolutionize Finance by 2030

February 25, 2025
Smart Money

Tokenized Real-World Assets: The Future of Finance

The realm of finance is undergoing a significant transformation as countries such as the United States, United Kingdom, Canada, Hong Kong, Singapore, and Switzerland develop regulatory frameworks for tokenized real-world assets (RWAs). These assets, which include tangible items like real estate, stocks, bonds, and art, are paving the way for what analysts predict could be a multi-trillion-dollar market by the year 2030. Currently, the RWA crypto sector holds a market cap of approximately $62.22 billion.

The Rising Interest in Tokenization

As traditional financial systems intersect with blockchain innovation, RWA tokenization is rapidly gaining traction. By converting tangible assets into blockchain-based tokens, this method is capturing the attention of major financial institutions and regulators across the globe. Among those advocating for this shift is John Patrick Mullin, co-founder of MANTRA, a blockchain platform focused on RWA tokenization that recently obtained a license to operate in the United Arab Emirates.

Mullin posits that tokenized RWAs could represent crypto’s next trillion-dollar market, fundamentally altering the global financial landscape. In a recent discussion with CCN, he noted the increasing relevance of RWAs and their potential to exceed conventional cryptocurrency adoption rates, particularly in burgeoning markets like the Middle East and North Africa (MENA).

Economic Impact and Growth Projections

Mullin shared insights, citing the World Economic Forum’s projection that by 2027, around 10% of global GDP—roughly $10 trillion—could be stored on blockchain networks. Presently, the RWA crypto sector boasts a $62.22 billion market cap, having reached peaks upwards of $70 billion in early 2025. Analysts forecast the market for tokenized RWAs may soar to between $2 trillion and $30 trillion by 2030. The increasing value of tokenized bonds highlights this trend, with Mullin reporting a growth of $557.05 million in tokenized treasuries and other bonds during the first three quarters of the year. “That’s not chasing demand—it’s showing demand,” Mullin affirmed.

Recent data indicates that approximately $17.59 billion in on-chain RWAs are held by 86,354 holders across 110 asset issuers on public blockchains, according to the RWA tracker RWA.xyz. Noteworthy institutions such as BlackRock and Wisdom Tree are leading this movement, actively issuing millions in RWAs. BlackRock, for example, launched its tokenized treasury fund, BUIDL, in July 2024, allowing investors to acquire tokens backed 1:1 by U.S. dollars with daily dividend payouts.

Accelerating RWA Adoption in the Middle East

MANTRA is positioning itself as a key player in the Middle East, where the adoption of RWAs is rapidly accelerating. In July 2024, the firm tokenized a significant $500 million in real estate for MAG Group, a Dubai-based entity, providing returns in stablecoins and MANTRA’s OM tokens. Furthermore, MANTRA has partnered with DAMAC Group to extend tokenized financing across various sectors such as real estate, hospitality, and data centers, aiming for a minimum valuation of $1 billion.

Mullin emphasized that sectors quick to adapt to tokenization will offer enhanced experiences to their users. The MENA region presents a unique opportunity for RWA adoption due to its abundant resources in oil, gas, gold, and real estate, alongside a digitally aware population comfortable with technologies like Web3. ## Regulatory Framework and Future Prospects

In contrast to the past growth trajectory of cryptocurrencies like Bitcoin, which expanded prior to any regulatory clarity, RWAs are emerging alongside developing regulatory frameworks. Mullin asserts that this alignment not only facilitates adoption but also reveals RWAs’ "almost limitless potential" as an asset class. Efforts to tokenize RWAs are also evident across the Asia-Pacific region and Europe, with countries such as Hong Kong and Singapore leading initiatives that are often government-backed.

Despite challenges that the RWA sector still faces—such as infrastructure issues, regulatory harmonization, and the necessity for investor education—Mullin retains an optimistic outlook for the future. With governmental institutions, financial organizations, and blockchain firms increasingly collaborating on RWAs, the path forward seems clear: tokenized assets are set to become a mainstay in the financial ecosystem, progressively increasing in prominence and scope.

Disclaimer

The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.