The Prospects of Exponential Growth
- Gastón Garavano
- Oct 30
- 2 min read
The case for tokenization is now well understood. The benefits—faster issuance, lower operating costs, broader investor access, and real-time asset servicing—are already visible in early deployments. The next phase is about execution. Institutions must now define their position within the emerging market infrastructure.
The prospects of exponential growth (p. 3)
The market of tokenized assets has fluctuated over the years. When it was first introduced, these assets were seen as one of many forms of digital currency. In 2022, after the collapse of several high-profile blockchain projects, momentum stalled temporarily. Since early 2023, the market value has seen a double-digit CAGR.
Tokenization is advancing at different speeds across asset classes—fastest where it delivers real efficiencies and where conditions allow for secondary markets to emerge
Laurent Marochini, CEO Luxembourg, Standard Chartered
Many overlapping structural and market forces are contributing to the growth:
Regulation, technology, and infrastructure readiness:
Expanding regulatory clarity, as more jurisdictions move towards comprehensive legal frameworks for digital assets;
Blockchain-related technology has matured into enterprise-grade infrastructure—with integration into the core banking stack and wallets, custody platforms, and token standards fit for institutional use;
Technological advances, including user-friendly infrastructure (such as wallet integration on mobile phones) are lowering adoption barriers.
Institutional adoption, strategic investment, and platform integration:
Blockchain adoption by global banks for cross-border payments and settlement automation;
Scaling by some Tier 1 financial institutions, moving from pilots to live platforms—for example, JPMorgan’s Kinexys has processed over USD 1.5T in tokenized transactions since launch, with daily volumes exceeding USD 2B;
Fintech and technology M&A, with banks and major financial institutions acquiring startups to accelerate tokenization capabilities.
Market behavior, asset expansion, and investor demand:
Follower effect, where market leaders attract further issuer and investor participation in tokenized instruments;
Learning effects, with first movers refining their implementation strategies and disseminating knowledge;
The rise of tokenized commodities, including gold, oil, and agricultural products;
Demographic-driven demand from younger investors, who show a strong preference for digital assets, and whose interest is fueled by their rising incomes and generational wealth transfer to them.
Estimated market growth by asset classes, industries, and geographies:
Tokenization of real-world assets is projected to grow from around USD 0.6T in 2025 to USD 18.9T by 2033 in the midpoint scenario, representing a 53% compound annual growth rate. Exhibit 2 shows projected tokenization volumes by asset class and estimates their market value by 2033, based on current valuations and forecast growth rates. It also breaks down expected volume by the industries initiating tokenization.
The sizing focuses on real-world asset classes with high tokenization potential and relatively stable valuation profiles. Cryptocurrencies are excluded due to their high speculative use, while CBDCs are omitted as monetary policy instruments that do not necessarily rely on
blockchain infrastructure. Market forecasts for China and Russia are not included due to regulatory restrictions and limited market accessibility.
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