The Tokenized Bond Market May Surge to At Least $300B by 2030: Lamine Brahimi

The tokenized bond market may surge to at least $300 billion by 2030, representing a 30x gain from current levels.

The tokenized bond market is poised for explosive growth, surging to at least $300 billion by 2030, a 30x gain from current levels, according to Lamine Brahimi, co-founder of Taurus SA.

Citing research from McKinsey, Brahimi told Cointelegraph that the $300-billion estimate is a base case that includes government, municipal and corporate bonds.

“Tokenizing bonds allows for near-instant settlement times, reduces transaction costs, and can democratize the investment process through fractional ownership,” he said.

Tokenized real-world assets (RWAs), which include bonds, stocks, stablecoins and other real-world items, are projected to reach a $10-trillion market cap by 2030 as the world moves onchain.

During a recent interview at the World Economic Forum’s Davos summit, BlackRock CEO Larry Fink said every stock and bond should be tokenized onchain.

Fink likewise said that the tokenization of real-world assets would democratize investment markets by lowering the barrier to entry.

Data from RWA.xyz shows that the tokenized US treasury sector currently has a market capitalization of over $3.4 billion.

The Hashnote Short Duration Yield Coin (USYC) commands the largest market share at an asset value of over $1.2 billion.

BlackRock’s United States dollar Institutional Digital Liquidity Fund (BUIDL) has the second-highest market cap at over $642 million.

In July 2024, BUIDL became the first tokenized treasury fund to reach the $500-million milestone and managed to keep its lead as the largest tokenized treasury product until December 2024.

At the time of this writing, $2.4 billion of the $3.4 billion in tokenized treasuries are on the Ethereum network.

While the tokenization of real-world assets promises to reduce transaction costs for buyers and issuers, some tokenized bond pilot programs do not take full advantage of the permissionless and cost-saving features of blockchain technologies.

The presence of unnecessary human intermediaries in the bond tokenization process introduces redundancies that drive up costs and neutralize the value proposition of onchain finance.