Asset tokenization is the process of representing real-world assets such as real estate, art, and even gold as digital tokens on the blockchain. It makes secure transactions easier online. Each token represents an asset, enabling investors to purchase and trade fractional ownership without acquiring the entire asset.
The whole concept of tokenization makes it investment-friendly as it is cheaper for those who prefer buying in smaller quantities.
Blockchain ensures that no one can tamper with ownership records, making assets safe and easily traceable. You can create digital proof of ownership for real-world liquid assets using the following methods: Asset Tokenization Platform. No broker is required, reducing transaction costs.
Many research firms predict a promising future for asset tokenization. Here are some statistics to prove it.
Top Asset Tokenization Statistics for 2024
Asset tokenization has been around for a long time. And it’s growing at an astonishing rate. Check out statistics to understand where the market is headed.
- The global tokenization market is expected to reach $5.6 billion by 2026.
- In 2017, an Andy Warhol painting was tokenized by being chopped into digital fragments on the Ethereum blockchain. It sells for $1.7 million, with each token accounting for 31% of its total value.
7-9%
By 2027, 40% of investors’ entire portfolios will be allocated to tokenized assets.
Source: Ernst & Young
- Fifty-three percent of respondents said the main reason for tokenizing assets was to gain access to new investors and capital, and 57% said it was to increase liquidity.
Costs and Savings of Asset Tokenization
Tokenization of assets can lead to significant cost savings in clearing and settlement. Take a look at these statistics, which add monetary figures to represent the cost of tokenizing an asset and the expected savings.
- Asset tokenization costs range from $100,000 to $300,000.
- Through widespread tokenization, companies can save $20 billion in global clearing and settlement costs annually.
- It is predicted that by 2030, US$16 trillion in illiquid assets will be released through tokenization.
- Digital representation of bank assets (e.g. stocks, bonds) has become a promising use case, with the Financial Times estimating that DLT-powered market infrastructure could provide 100% of asset management revenue annually just in the process of buying and selling funds. cost savings of up to $2.7 billion.
Asset Tokenization Market Statistics
The asset tokenization market is experiencing tremendous growth. It can be seen from these statistics. Check them out to see which assets are trending in the market.
- By 2030, the value of tokenizable assets on the market will reach $26 trillion.
- In 2023, the global tokenized currency market size will be US$17.725 billion.
- In the fourth quarter of 2020, the total size of the global digital asset market was approximately US$350 billion.
97% and 1%
is the share of currency and real estate in the $18.1 billion tokenized asset market size.
Source: PwC
- It is expected that tokenized assets will account for 10% of global GDP by 2030.
- As of December 2023, the most common types of tokenized assets are real estate and stocks.
- 56 out of 80 organizations have their own tokenized asset markets. They support the fragmentation of real-world assets.
Asset Tokenization Platform Statistics
Many asset tokenization platforms allow individuals and organizations to create digital proof of asset ownership. Check out these statistics to learn more about the customer segments these platforms cater to and their preferences.
- Brickken’s market segment consists of 100% small businesses.
33%
of Kaleido users fall into the enterprise segment, while 58% are small businesses.
Source: G2
- 31% of Fireblocks’ customers are in the mid-market.
- Users rated HollaEx’s ease of use as 9.2 out of 10.
- 75% of Nyala users are from small businesses.
- Kaleido has better ratings out of 10 for support quality and ease of use (9.4 and 9.2 respectively)
Thoughtful investment
Tokenizing assets makes investing easy, breaking down barriers for people to participate in markets they were previously excluded from. The statistics above clearly demonstrate that tokenized assets save costs associated with trading and settlement.
It benefits traders who want to make more profits while reducing costs shared by brokers and other intermediaries.
Learn more about Free asset tokenization platform Start investing in digital assets.
