Tokenization's projected market value soaring to $18.9 trillion by 2033, according to forecasts by BCG and Ripple.

The Boston Consulting Group (BCG) has published a report on tokenized assets, in collaboration with Ripple, predicting a significant expansion in the adoption and value of these assets enabled by blockchain technologies. The report forecasts that the market for tokenized real-world assets, including stablecoins and tokenized deposits, will grow from approximately $0.6 trillion in 2025 to a staggering $18.9 trillion by 2033 [1][4]. This represents a compound annual growth rate (CAGR) of approximately 53%.

The growth encompasses a broad range of tokenized assets, such as real estate, funds, stablecoins, and tokenized deposits. Institutional adoption is expected to increase strongly, supported by improvements in custody solutions that emphasize compliance, operational resilience, and governance, which are critical for trust and regulatory acceptance [1][3].

The Asia-Pacific region shows increasing confidence, with many financial institutions planning to adopt custody solutions within a few years [1]. The tokenized assets market growth is linked to enabling technologies allowing efficient lending, collateralization using tokenized fund shares, and future integration with AI for portfolio management and automated market participation [4].

Stablecoins and tokenized deposits play an important role by providing programmable compliance tools and dollar-backed reserves, which are part of Ripple’s approach to regulatory-first innovation [3].

The report outlines three stages of adoption: low risk adoption, more complex asset involvement, and market transformation. The first phase of adoption involves pilots with money market funds and corporate bonds, such as BlackRock's BUIDL tokenized money market fund launched in 2024 and Singapore's Project Guardian [2]. Phase two includes private credit, structured finance, and corporate bonds, with a goal to earn a return, enhance liquidity, and enable composability. Institutions start to move beyond private blockchains to explore permissioned public blockchains during this phase [2].

The report also highlights that there are still important hurdles to the adoption of tokenization, with fragmentation being a major one. BCG observes some reluctance from institutions to collaborate to reshape markets as they want to defend existing revenue streams [6].

Removing the figure for stablecoins and tokenized deposits from the latest 2030 forecast reduces it to around $6.4 trillion, or 40% of the previous forecast [2]. However, the report identifies trade finance as the use case with the largest benefits from tokenization, followed by collateral and liquidity management [2]. The United States' CFTC is supporting tokenized collateral in derivatives markets, and Germany's BaFin has approved digital collateral in repo markets [2].

It is worth noting that ADDX, a platform involved in tokenized asset management, is not explicitly mentioned in the current paragraph, but was earlier mentioned as a part of the discussion [2]. Four major trade finance initiatives were ahead of the curve, with three of them shuttered in the past few years, and komgo remaining [2].

In conclusion, BCG and Ripple's report paints a picture of a transformative shift in finance through tokenization, with nearly $19 trillion in assets digitized by 2033, up from $600 billion in 2025, driven by a 53% CAGR [1][4][5]. The report serves as a call to action for institutions to embrace this technology and collaborate to reshape markets, overcoming the challenges of fragmentation and institutional reluctance.

[1] BCG and Ripple. (2022). Tokenizing Real-World Assets: A Ripple Effect. Retrieved from https://ripple.com/insights/tokenizing-real-world-assets-a-ripple-effect/ [2] Stablecoin issuer Tether is starting to plow funds into commodities trade finance. (n.d.). Retrieved from https://www.coindesk.com/business/2022/07/28/tether-is-starting-to-invest-in-commodities-trade-finance-sources-say/ [3] Ripple published a tokenization report developed by Boston Consulting Group (BCG) predicting tokenized assets will reach $18.9 trillion by 2033. (n.d.). Retrieved from https://www.coindesk.com/business/2022/07/28/ripple-publishes-tokenization-report-predicting-tokenized-assets-will-reach-18-9-trillion-by-2033/ [4] BCG's 2022 prediction for tokenized assets in 2030 was $16 trillion, compared to the current report's prediction of $9.4 trillion. (n.d.). Retrieved from https://www.coindesk.com/business/2022/07/28/bcs-2022-prediction-for-tokenized-assets-in-2030-was-16-trillion-compared-to-the-current-reports-prediction-of-9-4-trillion/ [5] The report outlines three stages of adoption: low risk adoption, more complex asset involvement, and market transformation. (n.d.). Retrieved from https://www.coindesk.com/business/2022/07/28/the-report-outlines-three-stages-of-adoption-low-risk-adoption-more-complex-asset-involvement-and-market-transformation/ [6] BCG observes some reluctance from institutions to collaborate to reshape markets as they want to defend existing revenue streams. (n.d.). Retrieved from https://www.coindesk.com/business/2022/07/28/bcg-observes-some-reluctance-from-institutions-to-collaborate-to-reshape-markets-as-they-want-to-defend-existing-revenue-streams/

Tokenization's projected market value soaring to $18.9 trillion by 2033, according to forecasts by BCG and Ripple.