Boston Consulting Group Eyes RWA Market... "A $5.5 Billion Jackpot Hit"

▲ Real World Asset Tokenization (RWA)/ChatGPT Generated Image

Boston Consulting Group (BCG) projected that the tokenized real-world asset (RWA) market could grow to $14 trillion by 2030 and reach $55 trillion by 2035. This analysis suggests that traditional financial assets across the board, including bonds, commodities, private credit, and equities, could be integrated into the blockchain-based tokenization trend.

According to crypto media outlet U.Today on May 8 (local time), BCG diagnosed that tokenization is no longer a niche experiment in the cryptocurrency market but is emerging as a structural change that will transform the existing financial system. The firm explained that tokenizing assets can increase investment accessibility, allow ownership to be divided into smaller units, and create a structure more advantageous than traditional markets in terms of settlement speed and global liquidity.

The traditional asset management industry is facing profitability pressures. While global assets under management (AUM) continue to grow, improvements in returns are limited, and institutional products are becoming increasingly commoditized. The spread of passive investing has led to lower fees and intensified competition. BCG believes that companies that control investor access routes will seize leadership in the financial industry in the future.

The center of capital flows is also rapidly shifting. Approximately 61% of the increase in global AUM from 2020 to 2025 is expected to come from individual investors. The Asia-Pacific region is growing faster than other regions, with an average annual growth rate of about 9%. U.Today reported that the effects of tokenization are most pronounced in markets demanding increased accessibility, fractional ownership, faster settlements, and global liquidity.

Blockchain-based infrastructure is already being used in pilot programs and institutional experiments related to government bonds, corporate bonds, private credit, commodities, and structured products. Tokenization enables 24/7 trading, reduces settlement friction, and enhances asset transferability. A key change is also the ability to open up markets, which were previously difficult for small-scale investors to access, to a wider investor base.

Private credit has been identified as a major beneficiary of the spread of tokenization. As insurers actively seek more avenues for revenue generation, blockchain technology provides a structure for these assets to move more efficiently between institutions and secondary markets. However, the $55 trillion forecast is still considered a very ambitious target.

For tokenized finance to grow to that scale, regulatory authorities in each country must standardize compliance frameworks across jurisdictions. Reliable identity verification layers, interoperable blockchains, custody systems, and legal clarity are also required. U.Today reported that major financial institutions have begun to view tokenization not as a separate system competing with existing markets but as a foundational layer for modernizing global finance.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*