Bitfinex Securities COO Jesse Knutson shared his insights with Cointelegraph on the future of the Real-World Assets (RWA) tokenization market. He emphasized that traditional financial institutions will become key players in driving the sector’s growth. While agile entities like family offices currently dominate, institutional investors are expected to take the lead in the future.
“Right now, it’s faster-moving institutions like family offices. I think they’ll have a huge impact in these early days. But ultimately, the benefits of tokenization will attract traditional institutional investors,” Knutson stated.
He pointed out that this trend of institutional adoption, seen previously in the crypto industry, is beginning to extend to RWA markets.
“The consensus is that these markets will grow, and their trajectory mirrors how the digital assets industry has evolved over the years,” he added.
RWA Market Potential
The RWA market capitalization currently stands at $195.5 billion, with $182.6 billion comprised of stablecoins. According to Tren Finance, the market could grow to $4 trillion by 2030 under conservative estimates and up to $30 trillion in an optimistic scenario.
Tether’s RWA Initiative
On November 14, Tether, the issuer of the USDT stablecoin, launched a closed beta test of its new platform, Hadron, designed for asset tokenization. Hadron offers tools for creating and managing tokenized assets across multiple blockchain solutions, including Bitcoin Layer 2 solutions like Liquid from Blockstream.
Tether developers highlighted Hadron’s robust compliance and risk management tools.
“Hadron aims to make the digital asset industry more transparent and accessible for both individual users and large institutions, including corporations and governments,” said Paolo Ardoino, CTO of Tether.
The platform has already been presented to several companies and government agencies, receiving positive feedback during preliminary testing.
Broader Industry Developments
On November 12, Lisk announced the launch of its mainnet Layer 2 solution for RWA and Decentralized Physical Infrastructure Networks (DePIN), signaling increased momentum in the sector.
The convergence of traditional finance with blockchain-based tokenization underscores the transformative potential of RWAs in reshaping financial markets.
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