Research Summary
The report discusses the rapid growth of tokenization, the process of converting rights to an asset into a digital token on a blockchain. It highlights the convergence of crypto and traditional asset classes, the value of tokenized assets, the role of Ethereum, the success of USD stablecoins, and the potential future market value of tokenized assets.
Key Takeaways
Tokenization: A Growing Phenomenon
- Tokenization’s Rapid Growth: The report emphasizes the rapid growth of tokenization, with the value of tokenized assets across public blockchains amounting to $118.57 billion. It suggests that blockchains are becoming the backend infrastructure for every asset class.
- Ethereum’s Dominance: Ethereum accounts for over 58% or $69.16 billion of all tokenized assets and has the most vibrant ecosystem, with more than 6 million daily active users and almost 6,000 monthly active developers. Other blockchains like Tron and Solana also have significant tokenized assets.
USD Stablecoins and Crypto Adoption
- USD Stablecoins’ Success: Digital dollars or USD stablecoins are the first successful tokenization implementation, representing ~10% of crypto’s total market value and ~97% of all tokenized assets. However, most tokenization solutions are not globally accessible due to regulatory restrictions and socioeconomic circumstances.
- Crypto Adoption: The report states that there are about 431 million crypto users, or about ~5.36% of the world population. Holders of tokenized assets account for a little more than 10% of the estimated 431 million crypto owners, or roughly 47 million people.
Future of Tokenization
- Tokenization’s Future Potential: The report estimates that the market value for tokenized assets will be between $3.5 trillion in the bear-case scenario and $10 trillion in the bull case by 2030. This value is derived from the estimated penetration rate of the total addressable market across various asset classes.
Actionable Insights
- Investigate the Potential of Tokenization: Given the rapid growth of tokenization and its potential future market value, it may be beneficial to explore the opportunities and challenges associated with this trend.
- Consider the Role of Ethereum: With Ethereum accounting for a significant portion of all tokenized assets, understanding its role and influence in the tokenization process could be crucial.
- Understand the Impact of USD Stablecoins: The success of USD stablecoins in the tokenization process suggests that they could play a significant role in the future of digital assets.
