- Tokenized assets could reach $18.9T by 2033, growing at a 53% CAGR, says Ripple report.
- Ripple’s report highlights tokenization’s rise in real estate, credit, and money markets.
- Early adopters like JPMorgan and Fidelity are scaling tokenization in real-world assets.
The tokenization market could grow exponentially according to recent predictions showing that $0.6 trillion will expand to $18.9 trillion by 2033. This report issued by Ripple and Boston Consulting Group (BCG) predicts that the tokenization market will increase by 53 percent annually to reach $18.9 trillion by 2033.
Digitalizing real-world assets will change global finance through blockchain-programmed tokens representing real estate, bonds, and private credit.
According to Ripple and BCG, a detailed roadmap for asset tokenization development exists because it supports continuous round-the-clock transactions and modular ownership consistency. BlackRock, Fidelity, and JPMorgan Chase have implemented tokenization while moving past their experimental phases.
The senior management of RippleX, led by Markus Infanger, reports that tokenized assets have entered real market operations, representing a substantial shift in market trends.
Three Phases Fueling Tokenization Growth
The report details a structured progression driving this market boom. Initially, institutions focus on low-risk assets like money market funds and bonds, establishing a foundation for broader adoption. As confidence grows, the focus shifts to complex instruments such as real estate and private credit, expanding the scope of tokenization.
Eventually, the practice embeds itself across financial and non-financial products, transforming how markets operate. Regulatory clarity in regions like the EU, UAE, and Switzerland accelerates this trend, with the U.S. expected to follow soon. Mature technology, including secure wallets and custody platforms, supports the shift.
Additionally, strategic investments and mergers in the banking and fintech sectors propel growth, creating a self-reinforcing supply and demand cycle. Tibor Merey, Managing Director at BCG, explains that tokenization turns financial assets into interoperable tools, enhancing efficiency and accessibility.
Ripple’s Role and Industry Challenges
Ripple offers XRP and RLUSD technologies, which it markets as vital infrastructure for this transformation. The XRP platform supports quick and affordable international transfers, effectively solving the weaknesses in existing transaction processes.
RLUSD functions as Ripple’s stablecoin, which operates with a dollar-to-U.S. dollar peg to provide reliability for businesses initiating tokenized market ventures. The network handles approximately $150 million daily transactions while maintaining a $300 million market value.
Despite the optimism, challenges remain. Fragmented infrastructure and varying regulations across regions slow progress. However, collaborative efforts to standardize practices and build robust systems help address these hurdles. Bernhard Kronfellner, Partner at BCG, stresses that tokenization has moved beyond a theoretical concept. It now serves as a cornerstone for the future of finance, urging institutions to scale up from pilot projects. The Ripple-BCG report, available for download, provides a comprehensive look at this pivotal shift.
