tl;dr
The article discusses a report predicting that tokenized bonds will reach a $1 trillion market by 2028. It highlights the explosive growth of the blockchain sector in 2024, driven by factors such as ETFs, regulatory clarity, and the election of Donald Trump. The report also notes a surge in digital ...
Tokenized bonds are projected to reach a $1 trillion market by 2028, driven by the explosive growth of the blockchain sector and the increasing adoption of digital assets globally. The report, "Blockchain and Cryptocurrency Market Overview 2025" by Research and Markets, attributes this growth to factors such as the emergence of ETFs, regulatory clarity, and the election of Donald Trump in 2024. The number of digital asset holders surged by 30% year-over-year to reach 560 million in 2024, with emerging markets leading the growth, particularly in South America and Oceania.
The report highlights that the majority of digital asset owners are speculators and long-term holders, with 65% adopting a buy-and-hold strategy. It emphasizes the potential of tokenization as the blockchain application with the highest potential, projecting that tokenized bonds will hit the $1 trillion mark by 2028. Major banks and financial firms are already making strides in tokenization efforts. In Singapore, OCBC has introduced a solution allowing clients to tokenize corporate assets, while Northern Trust plans to launch tokenized green bonds for the National University of Singapore.
Even in China, where digital asset restrictions are stringent, tokenization is gaining ground, as evidenced by Zhuhai Huafa Group's issuance of a $190 million digital bond on the HSBC Orion blockchain platform. The EU is also focusing on regulatory frameworks for tokenization, with EU finance ministers considering strategies to promote local solutions amidst competition from Asian and American firms.
While the bond market has been the primary target for tokenization, the technology's application potential extends to various sectors. Mastercard's chief digital officer, Pablo Fourez, revealed the company's ambition to tokenize all online payments by 2030, aiming to enhance security by eliminating card numbers, passwords, and codes.
This report underscores the transformative potential of tokenization in the financial landscape, signaling a significant shift towards digital asset adoption and blockchain integration across global markets.