Citi sees tokenisation market reaching $8T

• Citigroup projects the tokenised real-world asset market could grow to as much as US$8.2 trillion by 2030 under its bullish scenario.
• Tokenised assets currently represent more than US$43 billion in market value according to Token Terminal data.
• Major financial institutions are increasing tokenisation efforts as blockchain adoption expands across traditional finance.

Citigroup said the market for tokenised real-world assets could reach US$8.2 trillion by 2030 under its bullish forecast, with a base-case estimate of US$5.5 trillion.

The bank said improving regulatory clarity and greater adoption of blockchain technology by financial institutions are helping move tokenisation beyond pilot programmes.

“Tokenisation is moving beyond experimental programs and into mainstream financial infrastructure,” Citigroup stated in its outlook for the sector.

Token Terminal data showed tokenised assets exceeded US$43 billion in market value, up roughly 37% over the past 180 days, while tokenised funds accounted for nearly 80% of the market.

Institutional interest continued to grow as financial advisers and asset managers increased focus on tokenised assets and stablecoins, and following the report there was no immediate market reaction available for tokenisation-related assets.

Ethereum (CRYPTO:ETH) hosted approximately 57.8% of tokenised asset value tracked by Token Terminal, ahead of BNB Chain, zkSync Era, XRP Ledger and Stellar.

Citigroup identified organisations including the Depository Trust & Clearing Corporation, the New York Stock Exchange and Nasdaq as participants that could support broader adoption of tokenised financial products.

At the time of reporting, Ethereum price was $1,786.46.