Growth Forecasts for Real World Assets (RWA) by 2024
In the world of tokenized assets, the combined circulation of stablecoins like Circle (USDC) and Tether (USDT) currently amounts to $115 billion. It is expected that in 2024, many teams will try to replicate their success by challenging the dominance of USDC and USDT. These teams will focus on key differentiations such as using alternative forms of collateral, offering additional incentives to users, and introducing new compliance frameworks. However, it is unlikely that there will be a significant reduction in the market share of USDC and USDT by 2024 due to their extensive interoperability and established network effects.
On the other hand, the tokenization of assets presents new investment opportunities. In 2024, broadcasters are expected to introduce tokenized alternative assets to the market, attracting investors seeking diversification. Intellectual property rights, carbon credits, and commercial financing credits are some sectors likely to generate interest.
Tokenized Assets and Regulation
Tokenization protocols that facilitate on-chain private credit transactions have grown significantly. Platforms will prioritize the needs of capital providers over those of asset originators. The challenge lies in ensuring that capital providers are robust enough. Regulatory authorities have started providing guidance on tokenization, and it is expected that this trend will continue in 2024 as tokenized asset markets develop further.
Sustained Growth of Tokenization in the Financial Institutions Sector
Many multinational financial institutions have launched tokenization products, indicating growing institutional interest in blockchain technology. This trend is expected to continue in 2024 as institutional fund managers feel a sense of urgency to keep up with industry pioneers. The issuance of digital bonds may also experience significant growth in 2024.
Hot Take: Real World Asset Growth in 2024
Forecasts for Real World Assets (RWA) in 2024 suggest significant growth in the tokenized finance landscape. While stablecoins like USDC and USDT are expected to maintain their market dominance, new teams will challenge them by focusing on differentiation. Tokenization of assets presents investment opportunities, particularly in sectors like intellectual property rights and carbon credits. Regulatory authorities are providing guidance on tokenization, and this trend will continue as tokenized asset markets diversify. The financial institutions sector is also experiencing sustained growth in tokenization products, driven by institutional interest in blockchain technology. Overall, 2024 promises to be a year of growth and innovation for Real World Assets.
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