Tokenized Assets Surge Past $50 Billion Market Value Driven by Real Estate and Debt Tokenization
1min read Tokenized assets have reached a significant milestone, surpassing $50 billion in market value. This growth is driven by various asset classes, with real estate being a major contributor, accounting for $30 billion of the total. The market is projected to expand rapidly, reaching a $2 trillion market cap by 2030, according to projections by McKinsey.
One of the key drivers of this growth is the surge in debt tokenization, particularly in Europe. Germany is leading this trend, accounting for nearly 60% of tokenized bond issuance. The European Investment Bank’s €100 million digital bond on Ethereum is a prime example of this trend, facilitated by the European Union’s regulatory clarity.
New entrants are expected to join the tokenized asset market in 2025, including companies like coinbase Asset Management, Glasstower, and Ripple. These companies will expand tokenized liquidity products alongside industry giants such as blackrock, Franklin Templeton, and ubs.
Real estate continues to be a major focus for tokenization due to its traditionally illiquid nature. The process enables fractional ownership, enhanced liquidity, and more efficient collateralization. Over $30 billion in real estate has already been tokenized or is in the pipeline. Tokenized real estate assets are now being used as collateral on decentralized finance platforms, increasing access to liquidity.
Tokenization also offers the potential for broadening market access. Traditional real estate investments or private equity funds often require substantial capital commitments, limiting participation to institutional investors or high-net-worth individuals. Tokenization allows assets to be fractionalized into smaller, more affordable units, making them accessible to a larger pool of investors. This approach can democratize investment opportunities, offering retail investors the chance to participate in high-value assets such as commercial real estate without the barriers typically associated with these markets.
The growth of tokenized liquidity products, such as Franklin Templeton’s BENJI fund and BlackRock’s USD Institutional Digital Liquidity Fund, demonstrates the increasing accessibility of tokenized investments across both retail and institutional markets. These products are designed to provide investors with greater liquidity and flexibility, further driving the adoption of tokenized assets.
