According to Jesse Knutson, Head of Operations at Bitfinex Securities, growth in this space will accelerate with the leadership of financial institutions.

Knutson stated that especially fast-moving financial institutions and family offices will make significant contributions to the tokenization sector in the early period. However, he emphasized that in the long run, mainstream financial institutions will also be involved in this field. Knutson said in an interview at the Plan B Lugano event:

“Institutions that are more flexible, especially those that move quickly, such as family offices, will have a big impact in the first period. However, over time, the benefits of tokenization will also attract mainstream institutional investors to this space.”

According to Tren Finance research report, it is predicted that the RWA sector could grow 50-fold and reach $30 trillion by 2030. Mid-range estimates put the industry at $10 trillion, a 54-fold increase over the current market value of $185 billion.

Stablecoins currently dominate much of the industry, creating a market value of $170 billion by October 2024.

Stablecoins can provide support to the US debt market, particularly by investing in US Treasury bonds. For example, according to Tether’s October 2024 report, it has a US Treasury bond portfolio of $84.5 billion.

Circle’s November 2024 report, supported by BlackRock, points to $11.1 billion in Treasury bill assets.

Financial institutions such as BlackRock and UBS Asset Management, one of the world’s largest asset management firms, are conducting pilot studies on tokenization. After Bitcoin gained 116% in value in 2024 thanks to spot ETF approvals, the RWA tokenization sector is expected to enter a similar growth process.

Knutson stated that RWA tokenization will follow the growth path of the crypto industry, adding:

“The general view in the markets is that tokenization in the future will evolve in the same way that the digital asset industry has grown over the years.”

Real asset tokenization could have a revolutionary impact on financial markets in the coming years. Investments and pilot projects made by the world’s largest financial institutions in this field reveal the potential of tokenization.

Both the interest of stablecoins in Treasury bills and the adoption of tokenization projects by institutional investors may herald a major transformation in the sector.