First comes the stablecoin market.

At present, we crossed the $270 billion level. This is something that is projected to reach at least $2 trillion by the end of the decade. Hence, we are going to see massive growth in the numbers of tokens available.

Stablecoins are important because they are the medium of exchange mechanism. We can see how this is already starting to impact the global payment system, with more than $1 trillion in transactions are being conducted.

It is a number that is about to explode.

While this is growing, we are seeing another phase in the tokenization market starting to roll out.

The next big thing in crypto will be real world assets.

https://img.leopedia.io/DQmQ1Zw2x27xZCmMepM7qoPqp2WM6A9NwQwUic8PFWQN28D/rwa.png

Real World Assets (RWA) - $23 Trillion in Tokenization by 2033

Crypto-assets are going to take over. This will come both in the form of new creations along with the tokenization of existing assets.

We will arrive at a point where it is likely that corporations no longer issue stock but, rather, are tokenized.

The process is underway, albeit at a minimal level. The above chart from RWA.xyz shows we are now over $25 billion in assets that site tracks. These are mostly at the institutional level, with retail investors shut out.

Like most things, that will probably change in coming years.

What is important here is not what we have today. Instead, the focus should be on what is evolving and how things can explode.

It is forecast that these numbers will move from the billions to trillions.

By 2033, the overall value of tokenized real-world assets is projected to reach nearly $19 trillion, according to recent estimates. And tokenized client assets like real estate and equities alone could top $3.7 trillion and $2 trillion, respectively.

This is something that will spread across the globe. Assets differ based upon what area we are looking on. Hence, the focus of tokenization will align with what is already present in particular regions.

Regional adoption patterns reveal North America and Europe expanding tokenized treasuries and money market funds, Latin America applying agricultural receivable tokenization to strengthen rural credit, and Southeast Asia deploying trade receivable solutions to enhance supply chain finance.

One thing to note is that we are not making some farsighted projection. When it comes to tokenization, the day already arrived.

Tokenization isn’t something to prepare for—it’s here. And with secure custody as the backbone, institutions worldwide can unlock new opportunities in the global digital asset economy.

The Path To Quadrillions

Over the years I predicted the crypto market would reach into the quadrillions. We are facing a complete transformation of the global economy. When we couple this with AI, the result if an automated economy of which crypto is a centerpiece.

Crypto-assets serve many purposes. The utility is actually just being discovered. That said, one role is to capture value. Even at the base layer, coins such as ETH capture the value of the network while also serving in other roles.

Adding up different asset classes gets us into the hundreds of trillions of dollars. This will all be tokenized at some point. The major elephant is real estate, with an estimated global total of around $300 trillion.

One key area will be derivatives, a market that is a "best guess" estimate. Some peg this at over $1 quadrillion on its own.

Again, we will see much of this tokenized.

The bottom line is a massive explosion in crypto-assets. Much of this will be on blockchain, offering a superior settlement layer. It also clarifies ownership since it uses the public-private key system.

If we step into the AI agent realm. we see where this is duplicated. Value generation is expected to be enormous. Because of this, we need a mechanisms to capture that. Tokenization is ideal for this.

Over the next decade, we will see hundreds of billions of agents created. The Internet will shift from a basis of websites to agents. Most of these will serve minimal utility, hence have low valuation. A few, however, will be centerpieces, offering token holders a huge opportunity.

RWA is next up. Do not be surprised if this moves into the hundreds of billions in the next couple years. Major institutions are going to be entering the arena on this.

Posted Using INLEO