As more and more opportunities emerge for crowdfunding and transactional processes using blockchain, the tokenization market is thriving, and the trend in tokenization in 2023 is exciting.

According to a report by Coindesk, the tokenization of assets is well underway and expected to accelerate. Major industries like real estate, private equity, and collectibles are embracing this technology.

In the first half of 2023, token generation events raised $1.66 billion in funding, representing significant growth from previous years. Various platforms now allow individuals to purchase shares of real-world assets like artistic works or real estate in the form of digital tokens.

RWA tokenization, NFTs, gaming tokens, and more crypto token examples open up new avenues of investing in tokenization for the public. Join us in this blog as we explore token and tokenization, the trend in tokenization in 2023, the future outlook and forecasts, and more!

What is tokenization?

Simply put, tokenization refers to the process of converting rights to an asset into a digital token on a blockchain. Tokenization breaks down ownership rights, debt, reward points, or physical assets into smaller, tradable units.

Global finance can now include previously illiquid assets, making them accessible to a much wider investor pool. Tokenization provides transparent ownership verification and transfer processes for assets using blockchain technology.

As first described in the World Bank report, core features of blockchain like decentralization, immutability, and transparency streamline transactions. The digitized tokens can represent anything from shares of a startup to loyalty points at a store.

Tokenization is thus democratizing access to investment opportunities with a wide range of token types, such as security tokens, cryptocurrency tokenization, and more. You can also check out “What is tokenization?” for a more comprehensive guide about this innovative feature of blockchain technology.

How big is the tokenization market?

The tokenization market has been rapidly growing in recent years and is projected to continue expanding significantly. Statista (2022) reports that the global blockchain market, valued at $5.85 billion in 2021, is projected to reach $1235.71 billion by 2030, representing an 82.8% compound annual growth rate.

Within this growing blockchain market, tokenization is one of the fastest-developing segments. Tokenization is transforming trillions of dollars worth of real-world assets (RWA) across sectors like real estate, private equity, venture capital funds, and more.

Grand View Research estimates the tokenization market will grow by over 60% annually to $13.53 billion by 2030. Statistics show most of the growth is happening in the US and Asia.

The US currently dominates, with over 50% of the global tokenized asset market. However, China and other Asian markets are emerging quickly due to a growing appetite for crypto investments.

What is the future outlook for tokenization?

Experts see tokenization becoming far more mainstream in the coming years, with significant potential upsides.

• Tokenized assets could exceed $24 trillion by 2027 as institutional investors increasingly adopt digital assets.
• According to Deutsche Bank (2022), traditional assets worth $66 trillion will be tokenized by 2030.
• Real estate alone could see $150 billion in assets tokenized globally by 2025.
• Artificially scarce digital collectibles like NFTs will continue disrupting industries like art, luxury goods, and more.
• Large companies may tokenize shares, enabling smaller investors to afford fractional ownership.
• Stablecoins backed by national currencies could transform cross-border payments. Cryptobunq offers the stablecoin EURK as one example.

However, significant regulatory hurdles remain globally, and market volatility is an ongoing risk. Still, as tokenization matures and adoption rises among consumers and institutions, the benefits of tokenization and its role in the future of digital finance seem inevitable.

What is the forecast for tokenized assets?

Market research firm CB Insights predicts the total value of tokenized assets will grow 50x by 2030 to a staggering $24 trillion. That’s nearly 25% of the total global M2 money supply.

CB Insights projects that tokenized assets will have a massive economic impact, with $5 trillion in tokenized real estate assets expected by 2027. CB Insights anticipates $5 trillion in tokenized real estate assets by 2027.

Real estate crowdfunding platform Propy estimated that real estate tokenization could reach $150 billion in five years. Meanwhile, Artory projected that the fine art market alone could see $10 billion in assets tokenized annually by 2030.

What is the future of blockchain tokenization?

The link between blockchain technology and tokenization is inextricable. The future of tokenization hinges greatly on continued innovation and the adoption of blockchain networks.

With advancements in scalable blockchains, tokenization will only become more seamless and powerful. Smart contracts enable customizable rules and features to be programmed into tokenized assets. Multi-chain token bridges will grant tokens interoperability across different ledgers.

As public awareness of crypto and its related technologies increases, blockchain tokenization looks set to disrupt legacy systems across industries like finance, real estate, art, identity management, and far beyond.

A tokenized future will bring more participation, liquidity, and value to both individuals and enterprises worldwide. There are some companies that play a role in adapting this technology into our everyday lives.

One-stop shop crypto service providers like Cryptobunq play a crucial role in this by offering tokenization, custody and wallet, exchange APIs, and other crypto service solutions to make blockchain technology more accessible.

EURK is a euro stablecoin that utilizes multiple blockchains to enable reliable and efficient transactions. With transparent transactions, EURK provides faster and more secure transactions and can help drive efficient economic growth across the world through greater financial inclusion.

Is tokenization a good investment?

While coins and tokens are volatile and risky in the short term, in the long term, tokenization seems like a promising area for investment due to its enormous projected growth. Institutional capital will flow into this emerging asset class, seeking exposure and returns, as more real-world assets become tokenized.

Tokenization represents an opportunity to get in early on a powerful digital transformation that many believe will be as influential as the web. By investing in solid projects, people can own a piece of the emerging tokenized economy and benefit as it scales globally over the next decade and beyond.

Companies like Cryptobunq that offer tools and services enabling tokenization also represent viable investment prospects for those seeking exposure to the sector’s growth. Of course, only invest amounts one is comfortable potentially losing, and do thorough research before purchasing any digital assets.

How do you invest in tokenization?

There are a few mainstream approaches to investing in tokenization space:

• Buy tokens from projects enabling tokenization infrastructure that offer integrated crypto services, such as Cryptobunq.
• Purchase shares in publicly traded companies working in blockchain, digital assets, and tokenization technologies.
• Contribute to token generation events (TGE) of projects launching tokens for specific tokenized assets or verticals like real estate, art, and collectibles. Research projects thoroughly first.
• Think about tokenized funds run by knowledgeable digital asset managers that offer diversified exposure.
• Purchase security tokens issued on regulated platforms representing equity, real estate, and other assets, such as with real estate tokenization projects.
• Always perform comprehensive due diligence, understand risks fully, and only invest amounts one is prepared to lose. The potential is huge, but volatility remains for crypto markets overall.

The bottom line

Tokenization is emerging as a powerful part of blockchain technology that promises to transform how value and assets are defined in the digital age.

If current trends in tokenization in 2023 and forecasts hold true, those investing now in innovative tokenization projects and leaders like Cryptobunq stand to benefit from front-row seats in this revolution. With mainstream adoption accelerating, the tokenized future is coming fast.

The question is, “Will you be a part of building it?”. If the answer is yes, CBQ is here for you with expert crypto service solutions, including tokenization. Contact us today and start to explore the benefits of tokenization for your individual and business-related projects!