Tokenization of illiquid assets to reach $16 billion by 2030 - Report

Much of the world's wealth today is locked away in illiquid assets, the report's authors note.
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The total size of illiquid tokenized assets, including real estate and natural resources, could reach $16.1 trillion by 2030, according to the Boston Consulting Group (BCG).

In a recently published report by BCG and private market digital exchange ADDX, authors including BCG Managing Director Sumit Kumar and ADDX co-founder Darius Liu noted that "a Much of the world's wealth today is locked away in illiquid assets.

According to the report, illiquid assets include pre-IPO stocks, real estate, private debt, small and medium business income, physical art, exotic drinks, funds private, wholesale bonds and many more.

The reasons for this illiquidity of assets are attributed to factors such as limited affordability for mass investors, lack of expertise in wealth management, limited access, for example when assets are reserved for elite cliques (in the case of fine art and vintage cars), regulatory hurdles, and other scenarios where users find it difficult to acquire or trade an asset.

Tokenization of on-chain assets could solve this problem, a market that exceeded $2.3 billion in 2021 and is expected to reach $5.6 billion by 2026, according to the report.

The authors added that in the past two years alone, the global daily trading volume of digital assets has increased from €30 billion in 2020 to €150 billion in 2022, noting that it "is still miniscule compared to the total potential of illiquids". tokenizable assets in the world."

By 2030, the authors predict that the on-chain asset tokenization opportunity will reach $16.1 trillion, consisting largely of financial assets (such as insurance policies, pensions, and investments) alternatives), equity in a property, and other tokenizable assets, such as infrastructure projects, car fleets, and patents.

Tokenization of Global Illiquid Assets by 2030 .Source: Boston Consulting Group
The authors also noted that this was a "very conservative forecast" and that I...

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Tokenization of illiquid assets to reach $16 billion by 2030 - Report

Much of the world's wealth today is locked away in illiquid assets, the report's authors note.

Tokenization of illiquid assets to reach $16T by 2030: Report

New

The total size of illiquid tokenized assets, including real estate and natural resources, could reach $16.1 trillion by 2030, according to the Boston Consulting Group (BCG).

In a recently published report by BCG and private market digital exchange ADDX, authors including BCG Managing Director Sumit Kumar and ADDX co-founder Darius Liu noted that "a Much of the world's wealth today is locked away in illiquid assets.

According to the report, illiquid assets include pre-IPO stocks, real estate, private debt, small and medium business income, physical art, exotic drinks, funds private, wholesale bonds and many more.

The reasons for this illiquidity of assets are attributed to factors such as limited affordability for mass investors, lack of expertise in wealth management, limited access, for example when assets are reserved for elite cliques (in the case of fine art and vintage cars), regulatory hurdles, and other scenarios where users find it difficult to acquire or trade an asset.

Tokenization of on-chain assets could solve this problem, a market that exceeded $2.3 billion in 2021 and is expected to reach $5.6 billion by 2026, according to the report.

The authors added that in the past two years alone, the global daily trading volume of digital assets has increased from €30 billion in 2020 to €150 billion in 2022, noting that it "is still miniscule compared to the total potential of illiquids". tokenizable assets in the world."

By 2030, the authors predict that the on-chain asset tokenization opportunity will reach $16.1 trillion, consisting largely of financial assets (such as insurance policies, pensions, and investments) alternatives), equity in a property, and other tokenizable assets, such as infrastructure projects, car fleets, and patents.