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Laxman Pai, Opalesque Asia:

Real-world asset (RWA) tokenization is set for explosive growth over the next five years with assets under management potentially topping $600 billion by 2030, according to a study.

Having garnered more than US$2 billion in assets under management (AUM) as of October 2024, Boston Consulting Group (BCG) estimates that tokenized fund AUM could reach 1% of global mutual funds and exchange-traded funds (ETF) AUM in just seven years. This would imply an AUM of more than US$600 billion by 2030.

"Fund tokenization, the third revolution in asset management, offers the potential to create billions of dollars in value for both financial institutions and end investors," stated the latest whitepaper, "Tokenized Funds: The Third Revolution in Asset Management Decoded" co-developed by Boston Consulting Group ("BCG"), Aptos Labs, and Invesco.

The whitepaper highlights that tokenized funds are witnessing a potential investment demand of approximately US$290 billion, with the prospect of trillions more as traditional financial institutions such as asset managers and wealth managers embrace on-chain money adoption.

"We see a pattern of growing investor demand in the tokenized funds space," said David Chan, Managing Director and Partner at BCG. "Over the coming period, we expect that trend to continue, especially when regulated on-chain money such as regulated stablecoin, tokenized deposit, and central bank digital currency (CBDC) projects m......................

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