June 6, 2023

Citi: The market for tokenized assets will grow to $5 trillion by 2030

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Citi: The market for tokenized assets will grow to $5 trillion by 2030

According to analysts at investment bank Citi, by 2030 the tokenized assets market will grow by 80 times and will total from $4 trillion to $5 trillion.

Citi researchers published a report "Money,tokens and games”, which assumes that in seven years the volume of trade finance based on distributed ledger technology (DLT) will also increase to $1 trillion. Of the above $5 trillion of tokenized assets, $1.9 trillion will be in debt, $1.5 trillion in real estate, $0.7 trillion in private equity, and $0.5-1 trillion in securities.

According to analysts, the most tokenizationprivate equity and venture capital investments will be affected, capturing 10% of the target market, while real estate will account for 7.5% of tokenized assets. However, if these optimistic predictions do come true by 2030, tokenized assets will still only represent a small fraction of the total number of target markets, the analysts noted.

“Asset tokenization can replace the obsoletefinancial infrastructure and provide more opportunities for investment in private markets. This will eliminate the need for time-consuming reconciliation of data and sending documents, prevent settlement failures and increase the efficiency of operations. DLT will allow all stakeholders to perform all actions in a common infrastructure,” the authors of the report are convinced.

At the same time, Citi researchers noted the mainobstacles to asset tokenization: lack of a regulatory framework, problems with infrastructure and interoperability standards. In addition, many industry participants are still skeptical about the latest technologies.

So, in November last year, the AustralianThe stock exchange (ASX) refused to launch a blockchain-based CHESS clearing system due to its labor intensity, and in December fired the developers working on this project.