IOTA’s Asset Tokenization Path: Researcher Analyzes DeFi and Tokenization’s $68 Trillion Future

• IOTA is expected to perfectly align with the current momentum of the tokenization market to capitalize on the potential $68 trillion valuation projected for 2030.
• A researcher has disclosed that the real estate sector, which had a business volume of $4.4 trillion last year, could reach $5.1 trillion by the end of the decade.

A report recently released by Standard Character and Synpulse estimates that the tokenization market will reach $30.1 trillion in the next 10 years. According to the projection, trade finance, which is among the top three classes of tokenized assets globally, would make up 16% or $4.8 trillion of this value. Fascinatingly, several blockchain networks, including IOTA (IOTA), have taken groundbreaking initiatives to take advantage of this potential.

Confirming our earlier report, IOTA recently launched layer 2 Ethereum Virtual Machine (EVM) to focus on Real World Asset (RWA) usage as part of the efforts to match the current demand. According to analysts, its EVM introduces cutting-edge functionality, including smart contracts, cross-chain capabilities, parallel processing, and security against Maximal Extractable Value (MEV). Clarifying this, IOTA co-founder Dominik Schiener, explained that the main mission of the blockchain network is to enable institutions to tokenize their real-world assets.

We are positioning IOTA to bring the real world to Web3 and help bring trillions of assets and institutional investors on-chain. With the establishment of the IOTA Ecosystem DLT Foundation as the first DLT foundation registered under the Abu Dhabi Global Market (ADGM) regulations, IOTA is uniquely positioned to lead in Real-World Asset (RWA) tokenization.

Researcher Weighs IOTA’s Technical Prowess

Having followed its progress in the past few years, an economic researcher identified as Salima has admitted that the future looks promising for the blockchain network. According to her, the “current and the future business volumes” in leading sectors such as real estate and digital identity are just an indication of the potential growth of the asset tokenization market.

As an economics researcher, I closely follow #IOTA technology and its applications in #DeFi. No, I’m not investing; I’m really just here for the technology… I know it sounds like an excuse, but that’s genuinely why I’m here. The current and future business volumes in sectors… pic.twitter.com/fbgd5vu4KW— Salima (@Salimasbegum) November 3, 2024

Also, she pointed out that the lower cost and elimination of intermediaries that come with the migration to blockchain could entice most of the leading sectors to consider on-chain operations. According to her, a mass transition could position the valuation of the tokenized market between $16 and $68 trillion by 2030.

Projection for Key Sectors

Elaborating on her thesis, Salima attached a research paper to indicate that the Factoring industry, which had a business volume of $3.86 billion in 2023, could double to $6.37 by 2030. Also, the digital identity sector, which had a business volume of $34.5 billion, would reach a volume of $84.2 billion by the end of the decade. Meanwhile, the real estate sector has been projected to reach a volume of $5.1 trillion from the $4.4 trillion recorded in 2023.

As parts of these markets migrate to the blockchain, with lower costs and no intermediaries, the tokenized assets market is expected to reach between $16 and $68 trillion by 2030 (BCG, ADDX, 2022. Asset Tokenization), paving the way for a more accessible, efficient, and barrier-free financial system. As we approach 2030, the financial future looks more inclusive and accessible, leaving behind the need for traditional intermediaries.

According to analysts, IOTA’s domination of this industry could “drag” its native token along. Meanwhile, our market data shows that the asset has declined by 66% from year to date. At press time, IOTA was trading at $0.10.