Tracy Jin, Operational Director of MEXC Crypto Exchange, warns that tokenization of assets in the real world (RWAS) carries a significant number of centralized risks that can lead to censorship, liquidity, legal uncertainty, problems with cyber security and confiscation related to efforts.
In an interview with Cointelegraph, the director said that as long as the tokenized assets remain in the field of state regulators and centralized intermediaries, “tokenization will simply be a new version of the old financial infrastructure, not a financial revolution.” Jin added:
“Most of the tokenized assets will be issued on permits or partially concentrated blockchains. This gives the authorities the right to issue restrictions or confiscation of assets. Tokenization of assets such as real estate or bonds, is still associated with the national legal system.”
“If the property or company behind the token is local, in a country with an unstable legal environment or high political variability, the risk of confiscation increases,” continued the director.
It is expected that RWA toketenization will become a sector of many trillions in the next decade, when the world’s assets appear, which will boost the speed of money and boost the range of capital markets around the world.
Total market capital of the RWA sector. Source: Rwa.xyz
Related: The Dubai Earth Department begins a real estate tokenization project
Estimates of the future RWA market differ dramatically
The tokenized assets in the real world include shares, bonds, real estate, intellectual property rights, energy, art, private loan, debt instruments, FIAT currency, goods and collections.
According to Rwa.xyzCurrently, there are over $ 19.6 billion in tokenized assets in the real world, excluding the Stablecoin sector, which in December 2024 led market capital worth $ 200 billion.
Test report Huge financial institutions surveyed from Tren Finance, including Citi, Standard Khartered and McKinsey & Company; The report showed that participants predicted that the RWA market would reach $ 4 to $ 30 trillion to 2030.
Financial institutions provide various forecasts for the future of the tokenized RWA market. Source: Train financing
McKinsey & Company predicted that the RWA sector covers from $ 2 to $ 4 trillion to 2030 – a relatively modest rating compared to other forecasts.
Meanwhile, institutions such as the Standard Chartered and the management at Blockchain Network Polygon claim that the RWA market will reach $ 30 trillion in the next decade.
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