NEW YORK–By 2030, U.S. industries will see $291-billion in revenue driven by asset tokenization, according to a new analysis.
“The blockchain industry, although volatile and nascent, has made significant progress in a short span of time, driven by remarkable innovation,” said GlobalData. “Global blockchain platform and services revenue is set to grow from $12 billion in 2023 to $291 billion in 2030. This growth trajectory reflects a more delineated and specialized expenditure pattern, with specific areas such as asset tokenization, blockchain development, and infrastructure services serving as primary drivers of market expansion.”
The analysis was released as part of GlobalData’s new report.
GlobalData’s said its latest report, “Thematic Research: Blockchain,” reveals a “pivotal shift from the technology’s broad, indiscriminate application to more focused, strategic uses.”
‘Steady but Quiet’
“The industry is witnessing a quiet but steady increase in blockchain adoption, concentrating on its practical benefits,” GlobalData added.
The company said the trend is supported by a growing understanding that blockchain's applicability is not universal and that a robust digital infrastructure is crucial for its successful deployment.
“When blockchain entered the corporate arena, it was one of the most hyped technologies ever,” said Nicklas Nilsson, thematic intelligence consultant at GlobalData. “This initial enthusiasm proved to be a double-edged sword, as early adoption was driven by novelty rather than strategic value, leading to misaligned expectations and objectives and a lack of consideration for its appropriateness in specific use cases or industries.”
GlobalData added that despite the cooling of initial excitement, innovation within the blockchain space persists.
‘Awash With Developments’
“The industry is awash with developments like rising competition among smart contract blockchains, the rebranding of blockchain into Web3, the emergence of soulbound tokens, and the ever-vibrant world of cryptocurrencies,” GlobalData said. “A standout trend from the report is the emergence of asset tokenization as blockchain's next major application. Asset tokenization involves using blockchain to convert physical or digital assets into dividable and tradeable digital tokens. These tokenized assets provide a novel approach to owning assets by allowing investors to purchase portions of an asset rather than the entire asset.
“Asset tokenization can be applied to various assets, including financial instruments such as equities and bonds,” GlobalData continued. “However, the benefits are particularly apparent for illiquid physical assets such as real estate, precious metals, and fine art.”
The Second Killer Use Case
According to Nilsson, “If cryptocurrencies were blockchain’s first killer use case, then the tokenization of assets is the second. Virtually every financial giant launched tokenization initiatives in the past two years, citing their significant market potential. These major financial players are not just riding a trend; they recognize asset tokenization as a potential game-changer.”
According to GlobalData, converting various assets into tradable digital tokens lowers entry barriers by enabling fractional ownership and enhances global participation through increased liquidity and faster settlements. It’s a process that has broad implications for how wealth is distributed and how the economy functions, the company added.
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