The following is a guest article from Thomas Labenbacher, Founder and CEO of Assetera.
As the crypto industry leaves 2024 on a high note — marking a year filled with explosive growth — 2025 shapes up to become quintessential for the industry’s evolution.
The surge in real-world asset (RWA) tokenization and institutional influx in crypto will accelerate, driven by five key sectors showing the most explosive growth potential. Each of these trends will have major implications for the future of finance.
Tokenization transforms market liquidity
The far-reaching impact of tokenizing traditional real-world assets (RWAs) will become pronounced in 2025, massively improving liquidity and broadening market access, and bringing about a shift in how we think about asset ownership and trading. Tokenization will enhance traditionally illiquid assets through fractional ownership and 24/7 trading on blockchain platforms, enabling smaller players to access previously institutional-only assets.
The tokenized asset market is projected to reach $5 trillion, up from around $310 billion in 2022, with real estate comprising $1.4 trillion and bonds $1 trillion. Fractional ownership could attract 20%–30% more retail investors, while over 80% of institutional investors are expected to adopt tokenization. The liquidity premium for illiquid assets could reach 5%–20%, with real estate seeing up to 60% improvement in liquidity compared to traditional investments.
The US, EU, and Asia will dominate tokenization adoption, accounting for over 85% of the market. In a clear sign of market maturation, the number of tokenized securities listed on blockchain-based platforms is expected to grow by 200%.
And as the market for tokenized assets expands, the regulatory framework surrounding these innovations is evolving to keep pace.
Major regulatory shifts reshape the landscape
The regulatory environment isn’t standing still – far from it. Global regulatory frameworks will create more clarity for digital securities in 2025, marking a crucial evolution in how thes
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Author: Thomas Labenbacher
