Tokenization of real-world assets has emerged as a key topic at the World Economic Forum (WEF) annual meeting held in Davos, Switzerland.
The total value deposited in tokenized RWAs (real-world assets) has surpassed $21 billion, and industry representatives including Ripple CEO **Brad Garlinghouse** and Coinbase CEO **Brian Armstrong** emphasized that blockchain technology has transitioned from a pilot stage to an actual financial infrastructure stage.
What happened: RWA tokenization takes over Davos
Starting on January 19 and continuing through Friday, this forum featured panels with central bank officials and executives from major financial institutions, including 'Is Tokenization the Future?' and 'Where Are We on Stablecoins?'
Panel participants defined tokenization as a means to make traditionally illiquid assets like stocks, bonds, and real estate tradeable on-chain.
Glaringhouse stated that the scale of tokenized transactions on the XRP (XRP) ledger has increased from $19 trillion to $33 trillion in just one year.
**McKinsey** predicts that the tokenized asset market could grow to between $2 trillion and $4 trillion by 2030, while **Boston Consulting Group (BCG)** presented a scenario where it could expand to as much as $16 trillion.
Also read: Ethereum Reserves Hit 10-Year Low Across Exchanges As Price Falls Below $3K
Why it matters: Traditional finance (TradFi) embraces blockchain
BlackRock, BNY Mellon, Euroclear, and other institutions are now launching tokenized products on a large scale. **New York Stock Exchange** is reviewing tokenized securities and a 24/7 trading model while maintaining existing regulatory frameworks.
Armstrong mentioned that tokenized equities represent the future of traditional markets, emphasizing that tokenized stocks are the future of traditional markets.
According to data shared in the forum, over 65% of tokenized assets, including fiat-backed stablecoins, are currently issued on Ethereum (Ethereum) (ETH).
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