Tokenization’s $30T Future—Here’s What You Need to Know

Wall Street Is Moving Fast on Tokenization—Are You Ready?

Author

James Smith
February 02, 2025

📢 Tokenization is no longer a future concept—it’s happening now.

By 2030, the tokenization of real-world assets (RWAs) could reach $30 trillion, transforming everything from bonds and private equity to repo markets and art investments.

New reports from the CFA Institute and the IMF lay out the opportunities, risks, and real-world use cases that enterprises, builders, and investors need to watch.

Here’s what you need to know:

Key Drivers of Institutional Adoption

  • Asset Management Firms Leading the Charge: Major players like BlackRock, JPMorgan, and Franklin Templeton are actively exploring tokenized fund structures.

  • Regulatory Tailwinds: The European Union's MiCA framework and U.S. pilot projects signal increasing regulatory clarity.

  • Stablecoin & CBDC Synergies: The integration of stablecoins and central bank digital currencies (CBDCs) with tokenized securities could further accelerate adoption.

    “Integrating stablecoins with tokenized securities offers seamless settlement, but stability risks remain—especially when algorithmic designs or partially backed reserves are involved.” IMF Report

5 Key Takeaways from the Latest Research

  Institutional Players Are Moving Fast

  • J.P. Morgan, BlackRock, and Franklin Templeton are actively developing tokenized investment products.

  • J.P. Morgan’s Kinexys platform already processes $2 billion in daily repo transactions using tokenized collateral.

  • Central banks and financial institutions are piloting tokenized wholesale settlement systems, including Project Agorá by the BIS and major global banks​.

Efficiency Gains Are Real & Transformational

  • Settlement times drop from T+2 to near-instant, eliminating counterparty risk and improving liquidity.

  • Tokenized bond markets show a 0.78 percentage point lower yield spread than traditional bonds, making them cheaper to issue.

  • Programmability enables automated dividend payments, cutting administrative costs and removing intermediaries.

Tokenization presents a fundamental shift in how assets are issued, traded, and managed—promising efficiency gains, improved liquidity, and broader investor access. However, achieving its full potential depends on regulatory harmonization and infrastructure development." 

CFA Institute Report on Tokenization

Tokenization Could Disrupt Private Markets & SMEs

Fractional ownership models unlock private equity, venture capital, and real estate access.
SMEs can issue tokenized shares, bypassing expensive IPOs and private placements.
Case Study: Aktionariat AG, a Swiss fintech firm, tokenized SME equity using Ethereum, enabling direct investor participation

Risks & Regulatory Uncertainty Still Loom Large

The IMF warns that tokenization could amplify financial contagion risks, increasing systemic exposure.

Regulatory fragmentation is a challenge—while Europe’s MiCA framework leads the way, the U.S. remains divided on how to classify tokenized assets.

Market fragmentation risk—non-interoperable blockchain solutions could reduce liquidity rather than increase it.

"Increased interconnectedness from tokenized financial instruments may amplify market contagion, requiring a rethinking of systemic risk management."​ IMF Report


 Whats Next?

Tokenization is set to reshape financial markets—but who will benefit the most? Will it truly democratize investing, or will incumbents dominate with private permissioned blockchains?

Wall Street’s massive bet on tokenization is real—the time to prepare is now.

Regulators are moving, but uncertainty remains—MiCA is live in Europe, while U.S. policymakers debate classifications.


Investors should be watching: Who will win the race for institutional-grade tokenized markets?

A recent Cointelegraph report highlights how Wall Street firms are betting big on real-world asset (RWA) tokenization, with estimates suggesting that the tokenized market could reach $30 trillion by 2030.

Case Studies

Art & Collectibles – Enhancing Transparency

  • Sector: Fine art investment

  • Problem: Lack of transparency and liquidity in the art market.

  • Solution: Tokenizing artwork provides:

    • Digital proof of ownership.

    • Fraud prevention through a secure ledger.

    • Real-time updates on valuation and inspection.

  • Key Quote: “The art market generally has a lack of transparency, which is addressed through blockchain by providing investors security and reassurance in an automated manner.”

Tokenized Bonds & Money Market Funds

  • Use Case: Tokenizing fixed-income instruments, including:

    • Corporate bonds.

    • Money market funds.

    • Gold-backed securities.

  • Benefits: Increased liquidity, reduced settlement risk, and faster trade execution.

  • Challenge: Traditional financial institutions remain cautious due to regulatory uncertainty

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