Tokenization

Tokenization

Global Tokenization Market to Reach US$9.6 Billion by 2030

The global market for Tokenization estimated at US$2.7 Billion in the year 2023, is expected to reach US$9.6 Billion by 2030, growing at a CAGR of 19.7% over the analysis period 2023-2030. Tokenization Solutions, one of the segments analyzed in the report, is expected to record a 20.9% CAGR and reach US$6.8 Billion by the end of the analysis period. Growth in the Tokenization Services segment is estimated at 17.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$960.6 Million While China is Forecast to Grow at 24.6% CAGR

The Tokenization market in the U.S. is estimated at US$960.6 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.1 Billion by the year 2030 trailing a CAGR of 24.6% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 16.4% and 18.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 17.6% CAGR.

Global Tokenization Market - Key Trends and Drivers Summarized

Tokenization is the process of converting rights to an asset into a digital token on a blockchain. These tokens can represent real-world items like real estate, artworks, or equity, or intangible assets such as rights and licenses. The primary advantage of tokenization is that it simplifies the process of buying, selling, and trading assets while enhancing transparency and reducing fraud. This technology allows for fractional ownership, meaning investors can purchase small percentages of tokenized assets, making previously illiquid or hard-to-access markets more accessible and democratizing investment opportunities across a broader economic spectrum.

The development of tokenization platforms has seen rapid growth due to their ability to offer a more efficient, secure, and streamlined approach to asset management and investment. By utilizing blockchain technology, tokenization offers immutable record-keeping and automatic compliance checks, which are integral for trust and security in financial transactions. This innovation is particularly transformative in sectors like real estate and fine art, where the complexity and cost of transactions have traditionally limited access to wealthy individuals and large institutions. Moreover, in financial markets, tokenization allows for the creation of new asset classes, providing investors with diversified investment opportunities that were previously unfeasible due to high entry barriers or regulatory complications.

The growth in the tokenization market is driven by several factors, including technological advancements in blockchain, the increasing need for asset liquidity, and changing investor behavior towards digital assets. As blockchain platforms become more robust and user-friendly, they facilitate wider adoption of tokenization across different sectors. Economic factors such as the search for higher liquidity also propel the market, as tokenization provides an avenue for assets typically considered non-liquid to be easily traded. Furthermore, there is a noticeable shift in investor preference towards more transparent and flexible investment options, particularly among the tech-savvy younger generation who are more inclined towards digital and decentralized solutions. This shift is catalyzing the growth of digital marketplaces for tokenized assets, significantly impacting how assets are bought, sold, and perceived in the digital age.

Select Competitors (Total 190 Featured) -

• American Express Company
• Avaloq Licence AG
• Bitbond
• 10XTS
• AsiaPay Limited
• BGX
• BlockCrowd
• Blocksquare
• BlockState AG
• Bloomio
• Billon Group
• AlphaPoint
• Antier Solutions Pvt Ltd
• ALPHASEED TECHNOLOGY LDT
• AllianceBlock

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