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Banks are expected to drive the growth of the tokenization industry, potentially increasing its size 50-fold by 2030. Real-world asset (RWA) tokenization enables financial and physical assets to be represented on the blockchain. This growth is predicted to be chiefly propelled by large banks, according to Bitfinex Securities’ operations chief, Jesse Knutson. Financial institutions and consulting firms anticipate the RWA sector, currently dominated by stablecoins, to reach $30 trillion by 2030. Major financial institutions such as BlackRock and UBS Asset Management are already testing tokenization.

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Banks are going to be the lead players driving up the tokenization industry, which could possibly grow up to 50 times its current size by 2030. Real-world asset (RWA) tokenization is just a snazzy term for financial and other physical stuff getting represented on the blockchain, basically making it easier for people to invest in and trade these assets.

Jesse Knutson, who’s in charge of operations at Bitfinex Securities, claims that big banks will mostly be the ones fueling this growth. He also thinks that the surge we’re seeing in the crypto space will create a ripple effect into the tokenization sector.

Knutson believes it’s the more flexible and quick-to-adapt institutions that will make a big splash in the early stages. But eventually, he expects that the perks of tokenization will attract the attention of conventional institutional investors.

Giant financial institutions and business consulting firms are predicting that by 2030, the RWA sector could expand 50 times over and potentially reach a whopping $30 trillion.

The buzz is that most firms foresee the RWA sector becoming a market worth between $4 trillion and $30 trillion by 2030. If it hits a market size of about $10 trillion, that would signify a growth of over 54 times its current value of around $185 billion, including the stablecoin market, according to a report from Tren Finance.

Stablecoins are currently the big dogs in the RWA sector, taking up over $170 billion of the market, compared to the $2.2 billion value of tokenized securities and treasuries.

Jesse Knutson of Bitfinex reckons that the RWA tokenization industry will progress similarly to the growth curve of the crypto space. He thinks that the general sentiment is that markets will evolve in a direction resembling the growth of the digital asset industry.

More and more financial institutions are jumping on the RWA bandwagon, including BlackRock, the world’s largest asset management firm. Other financial institutions, like UBS Asset Management, are also testing out tokenization.