IOTA (MIOTA) Prepares to Dominate the $30 Trillion Tokenization Market, Targets Real-World Asset (RWA) Tokenization

A report recently released by Standard Character and Synpulse estimates that the tokenization market will reach $30.1 trillion in the next 10 years.

A recent report by Standard Character and Synpulse has revealed that the tokenization market is expected to reach an astounding $30.1 trillion over the next 10 years. This projection indicates that trade finance, among the top three classes of tokenized assets globally, will contribute significantly, accounting for 16% or $4.8 trillion of this value.

In a captivating move to capitalize on this potential, several blockchain networks, including IOTA (MIOTA), have undertaken groundbreaking initiatives. As reported earlier, IOTA recently launched layer 2 Ethereum Virtual Machine (EVM) to focus on Real World Asset (RWA) usage.

According to analysts, its EVM introduces cutting-edge functionality, including smart contracts, cross-chain capabilities, parallel processing, and security against Maximal Extractable Value (MEV).

IOTA co-founder Dominik Schiener clarified that the main mission of the blockchain network is to enable institutions to tokenize their real-world assets.

“We are positioning IOTA to bring the real world to Web3 and help bring trillions of assets and institutional investors on-chain,” Schiener said.

"With the establishment of the IOTA Ecosystem DLT Foundation as the first DLT foundation registered under the Abu Dhabi Global Market (ADGM) regulations, IOTA is uniquely positioned to lead in Real-World Asset (RWA) tokenization."

Researcher Highlights IOTA’s Potential in a Multi-Trillion Dollar Industry

Having followed its progress over the past few years, an economic researcher, Salima, couldn't help but share her optimism about the future of the IOTA blockchain network.

"As an economics researcher, I follow #IOTA technology and its applications in #DeFi closely," she said.

According to her, the promising future of the blockchain network is evident in the "current and the future business volumes" in leading sectors such as real estate and digital identity.

"No, I’m not investing; I'm really just here for the technology," she added.

"The current and future business volumes in sectors like real estate and digital identity are an indication of how big the asset tokenization market can grow."

She also pointed out that the lower cost and elimination of intermediaries that come with the migration to blockchain could entice most of the leading sectors to consider on-chain operations.

"A mass transition could place the valuation of the tokenized market between $16 and $68 trillion by 2030," she said.

Projection for Key Sectors

Salima attached a research paper to her tweet to elaborate on her thesis further.

According to the paper, the Factoring industry, which had a business volume of $3.86 billion in 2023, could nearly double to $6.37 by 2030.

Also, the digital identity sector, which had a business volume of $34.5 billion, would reach a volume of $84.2 billion by the end of the decade.

Meanwhile, the real estate sector has been projected to reach a volume of $5.1 trillion from the $4.4 trillion recorded in 2023.

"As parts of these markets migrate to the blockchain, with lower costs and no intermediaries, the tokenized assets market is expected to reach between $16 and $68 trillion by 2030 (BCG, ADDX, 2022. Asset Tokenization)," she said.

"This will pave the way for a more accessible, efficient, and barrier-free financial system."

"As we approach 2030, the financial future looks more inclusive and accessible, leaving behind the need for traditional intermediaries."

According to analysts, IOTA’s domination of this industry could “drag” its native token along.

Meanwhile, our market data shows that the asset has declined by 66% year-to-date. At press time, IOTA was trading at $0.10.