Asset tokenization is the process of representing real-world assets like real estate, art, or even gold into digital tokens on a blockchain. It makes it easier to trade them securely online. Each token represents a piece of asset, enabling investors to purchase and trade fractional ownership without the need to acquire the entire asset.
The whole concept of tokenization makes it investable since it’s more affordable for people who would prefer buying in small parts.
The blockchain ensures no one can tamper with the ownership records, making the asset secure and easy to track. You can create a digital proof of ownership for a real-world liquid asset using an asset tokenization platform. No broker is required, which reduces transaction costs.
Many research firms predict a promising future for asset tokenization. Here are a few statistics that prove it.
Top asset tokenization statistics in 2024
Asset tokenization has been around for a long time. And it’s growing at a phenomenal rate. Take a look at the stats to see where the market is heading.
- The global tokenization market is projected to reach $5.6 billion in 2026. It’s growing at a compound annual growth rate (CAGR) of 19%.
- In 2017, Andy Warhol's painting was split into digital pieces on the Ethereum blockchain to tokenize it. It was sold for $1.7 million, where each token represented 31% of its total value.
7-9%
of investors’ entire portfolios will be allocated to tokenized assets by 2027.
Source: EY
- 53% of survey respondents say the primary rationale for tokenizing assets is access to new investors and capital, and 57% say it’s increased liquidity.
Costs and savings in asset tokenization
Asset tokenization can save a lot of costs when it comes to clearing and settlement. Take a look at these statistics that add a monetary figure to how much it can cost to tokenize assets and how much savings are expected.
- Asset tokenization costs range from $100,000 to $300,000 and more.
- With widespread tokenization, companies can save $20 billion annually in global clearing and settlement costs.
- It’s predicted that $16 trillion of illiquid assets will unlock through tokenization by 2030.
- The digital representation of bankable assets (e.g., stocks, bonds) has become a promising use case, where the Financial Times estimates that DLT-driven market infrastructures may save asset managers up to $2.7 billion per year just in the process of buying and selling funds.
Asset tokenization market statistics
The asset tokenization market is experiencing tremendous growth. It’s evident from these statistics. Take a look at them to see which assets are trending on the market.
- Tokenizable assets will be worth $26 trillion on the market by 2030.
- In 2023, the market size of global tokenized currency was $17,725 million dollars.
- In Q4 2020, the total global digital asset market size was approximately $350 billion.
97% and 1%
is the share of currency and real estate in the $18.1 billion tokenized asset market size.
Source: PWC
- Tokenized assets are expected to make up 10% of global GDP by 2030. Non-fungible tokens are the primary drivers behind tokenization’s upturn.
- The most common tokenized asset types were real estate and equities as of December 2023.
- 56 out of 80 organizations have their own tokenized asset marketplace. They support the fractionalization of real-world assets.
Asset tokenization platform statistics
Many asset tokenization platforms allow individuals and organizations to create digital proof of ownership of assets. Take a look at these statistics to learn more about the customer segments these platforms cater to and how they like it.
- Brickken’s market segment is made up of 100% small businesses.
33%
of Kaleido users belong to the enterprise segment, while 58% are small businesses.
Source: G2
- 31% of Fireblocks’ customers are from the mid-market segment.
- Users rate HollaEx 9.2 out of 10 for ease of use.
- 75% of Nyala users come from small businesses.
- Kaleido has better ratings (out of 10) for quality of support and ease of use (9.4 and 9.2, respectively)
Invest thoughtfully
Asset tokenization makes investing easy, breaking barriers for people to participate in the market from which they were previously excluded. The stats above clearly show that tokenized assets save costs related to transaction and settlement.
It benefits traders who want to earn more profits while reducing the costs shared by brokers and other intermediaries.
Learn more about free asset tokenization platforms to start investing in digital assets.
by Piper Thomson
