Tracy Jin, Chief Operating Officer of MEXC Crypto Exchange, warns that symbolic risks of real-world assets (RWAS) pose a substantial amount of concentration risk that could lead to censorship, liquidity issues, legal uncertainty, cybersecurity issues and asset confiscation through state or third party intermediaries.
In an interview with Cointelegraph, executives said, as long as the iconic assets remain within the scope of state regulators and centralized intermediaries, “tokenization is simply a new version of the old financial infrastructure, not a financial revolution.” Jin added:
“Most tokenized assets are issued on a permitted or semi-centric blockchain, which gives the authority the authority to issue restrictions or confiscate the assets. Tokenization of assets such as real estate and bonds is still relevant to the national legal system.”
“In countries where the property or company behind the token is local and has a volatile legal environment or high political volatility, the risk of forfeiture increases,” the executive continued.
RWA tokenization is projected to be in trillions of sectors over the next decade as global assets become on-chain.
Total market capitalization of the RWA sector. Source: rwa.xyz
Related: Dubai Land Division launches real estate tokenization project
Future RWA market estimates will vary dramatically
Tokenized real-world assets include stocks, bonds, real estate, intellectual property rights, energy, arts, private credit, debt certificates, Fiat currency, commodities and collectibles.
According to RWA.xyz, Onchain, currently tokenized real-world assets, currently exceeding $19.6 billion, except for the Stablecoin sector, which surpassed its $200 billion market capitalization in December 2024.
The research report from Tren Finance voted for large financial institutions such as Citi, Standard Chartered, and McKinsey & Company. The report found that participants predicted that by 2030, they would reach the RWA market between $4 trillion and $30 trillion.
Financial institutions provide a variety of forecasts for the future of the tokenized RWA market. Source: Tren Finance
McKinsey & Company predicts that the RWA sector will be encompassed between $2 trillion and $4 trillion by 2030. This is a relatively modest rating compared to other predictions.
Meanwhile, agencies such as Standard Chartered and Blockchain Network Polygon executives have said the RWA market will reach $30 trillion over the next decade.
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