Asset tokenization could reach as much as $4 trillion by 2030, expanding access to real-world assets.

Tokenization, a way to record ownership of almost any asset on the blockchain, could transform how people spend, save, and invest. It may represent the biggest shift in the crypto industry since the launch of Bitcoin.

For tokenization to become mainstream, it would require major changes to existing financial systems. If it does, ownership records for assets ranging from account balances to real estate could move onto the blockchain.

How tokenization works

A token can represent a share in a company, part of a real estate property, or ownership of a piece of art. Blockchain tokens can be traded with low fees and near-instant settlement, and transactions can occur at any time without geographic restrictions. That could make it easier for investors in different regions to buy assets such as U.S. holdings.

Tokens can also be divided into smaller units than today’s fractional-share structures, potentially broadening access to investing.

Market outlook

McKinsey estimates the tokenized asset market could grow from $30 billion in 2024 to as much as $4 trillion by 2030.

However, identifying a trend is different from incorporating it into investment portfolios—particularly because many of the companies involved are private.

Two ways to invest in real-world asset tokenization

1) Cryptocurrencies that issue tokenized assets

Two blockchains already leading the tokenized-asset economy are Ethereum (ETH) and Solana. Ethereum is the largest, while Solana is among the fastest, and both have attracted major financial institutions looking to issue tokenized assets.

Ethereum key data points:

• Current price: $2,295.25
• Market cap: $277B
• Day’s range: $2,231.70 - $2,322.45
• 52-week range: $1,510.67 - $4,946.05
• Volume: 12B
• Today's change: (2.32%) $51.96

Ethereum accounts for $15 billion of tokenized assets in circulation today, representing over 55% of the total. It also hosts around $55 billion in decentralized finance (DeFi) funds, a related metric tracking assets locked in smart contracts.

If tokenization grows as McKinsey predicts and Ethereum captures even 20% of the projected $4 trillion market, that would imply $800 billion in tokenized assets flowing through the network.

The article also notes a historical correlation between Ethereum’s price and on-chain funds, suggesting that a rise in on-chain funds could support Ethereum’s price.

2) Listed companies with tokenized products

Another approach is to seek exposure through public companies involved in tokenization. Circle Internet Group (CRCL) is highlighted as an example.

Circle Internet Group key data points:

• Current price: $87.99
• Market cap: $22B
• Day’s range: $84.89 - $90.33
• 52-week range: $31.00 - $298.99
• Volume: 406K
• Avg vol: 16M
• Gross margin: 5.88%
• Today's change: (3.40%) $2.89

The article frames Circle’s potential upside in two ways.

Stablecoins and tokenized currency

Stablecoins are tokenized versions of traditional currencies, such as the U.S. dollar. As tokenization and blockchain transactions become more common, stablecoin usage could expand. Circle backs each stablecoin it issues with accessible assets such as U.S. Treasuries, so higher USDC circulation could increase the size of its yield-generating reserves.

Arc blockchain for tokenization

Circle is also developing its own Arc blockchain, which supports tokenization. The article says Circle has a reputation as a compliance-friendly blockchain firm, which could make it attractive to companies seeking tokenization solutions.

Impact and outlook

Tokenization could have significant potential, but the article emphasizes that it is still early and there are no guarantees. It also notes that progress in financial infrastructure and legislation would be important for the broader adoption of tokenization, which could benefit companies such as Circle and smart-contract-focused crypto networks.