Reports and statistics from financial analytics firms

Financial Industry Embraces $1.5 Billion Tokenization of Real-World Assets

Jun 10, 2024, 07:07 PM

The financial industry is increasingly focusing on the tokenization of real-world assets (RWAs), with major institutions and banks showing significant interest. BlackRock, a leading asset management company, has been at the forefront of this movement, with CEO Larry Fink emphasizing that every financial asset will eventually be tokenized. This shift is seen as a transformative change in how value is managed, akin to a once-in-a-50-year event, according to Sergey Nazarov of Chainlink. The collaboration between Chainlink and major financial institutions, including the Depository Trust & Clearing Corporation (DTCC), aims to bring Net Asset Value (NAV) data onchain, further driving crypto adoption and real-world asset tokenization. Tokenized funds on public blockchains have seen substantial growth, increasing 15-fold to over $1.5 billion, led by BlackRock. This trend is also supported by innovation teams at large banks and asset managers who are actively experimenting with tokenization and decentralized oracles. One company, BlackRock, manages 4x more capital than the entire crypto industry is worth. This growth has been observed over the past 15 months.