Tracy Jin, the Chief Operating Officer on the Mexc Crypto Exchange, warns that the tokenization of real assets (RWAS) brings with it a big amount of centralized risks that may result in censorship, liquidity problems, legal uncertainties, intermediaries of assets and asset fitting.
In an interview with CoinTelegraph, the chief said that “tokenization simply will likely be a new edition of the old financial infrastructure and never a financial revolution” so long as they continue to be under the world of ​​responsibility of state supervisory authorities and centralized placement. Jin added:
“Most tokenized assets are issued for approved or semi-centralized blockchains. This gives the authorities the authorities to issue restrictions or to confiscate assets. The tokenization of assets similar to real estate or bonds remains to be tied to the national legal system.”
“If ownership or the corporate is locally locally, in a rustic with an unstable legal environment or a high political volatility, the chance of confiscation increases,” continued the chief.
RWA tokenization is predicted to change into a multi-billion sector in the subsequent decade, since global assets on the chain will happen, which is able to increase the speed of cash and extend the reach of the capital markets worldwide.
The overall market capitalization of the RWA sector. Source: rwa.xyz
Estimates of the long run RWA market differ dramatically
The tokenized assets of the actual world include shares, bonds, real estate, rights to mental property, energy, art, private loans, debt instruments, Fiat currency, raw materials and collectibles.
According to RWA.XYZ, there are currently over 19.6 billion US dollars of tokenized real assets Aufchain, excluding the StableCoin sector, which exceeded a market capitalization of $ 200 billion in December 2024.
A research report by Tren Finance interviewed large financial institutions, including Citi, Standard Chartered and McKinsey & Company; The report showed that the participants had predicted that the RWA market had reached between 4 trillion dollars and $ 30 trillion dollars by 2030.
Financial institutions provide different forecasts for the long run of the tokenized RWA market. Source: Tren Finance
McKinsey & Company predicted that the RWA sector will include between 2 trillion US dollars and 4 trillion US dollars by 2030 -a relatively modest assessment in comparison with other forecasts.
In the meantime, institutions similar to Standard chartered and managers of the Blockchain Network Polygon Blockchain say that the RWA market will reach 30 trillion dollars in the subsequent decade.
