The tokenised real-world asset market has grown 431 per cent in 15 months from US$5.8 billion to over USD$30 billion – but adoption in Australia is still in its infancy.
According to Crypto.com, the growth in tokenised real-world assets is rapidly shifting from an idea into a structural change across global capital markets.
General manager international, Karl Mohan, said the expansion is underpinned by improved regulatory settings and greater participation from traditional financial institutions.
“The entry of major players such as BlackRock and Fidelity has helped validate tokenisation as a legitimate extension of existing financial markets, rather than a parallel system.
“As a result, tokenised products are increasingly being viewed as investable, institutional-grade offerings.”
Tokenised US Treasuries continue to represent the largest share of the market, accounting for around US$15.1 billion in value, growth is now becoming more diversified.
Asset-backed credit has been one of the fastest growing segments, increasing from roughly US$82 million to US$2.5 billion over the same period.
Meanwhile, tokenised commodities have also recorded strong performance, with market value increasing by more than 400 per cent.
“In Australia, adoption remains at an earlier stage, but there are clear signs that momentum is building,” Mohan said.
“More tokenised products are beginning to emerge locally, and Crypto.com expects this to accelerate significantly over the next 12 to 24 months as regulatory clarity improves and market infrastructure continues to develop.”
The crypto exchange expects to see traditional asset classes such as equities and money market funds increasingly becoming tokenised and the core drivers behind this growth are clear.
“Tokenised real-world assets offer near-instant settlement, improved transparency and more efficient transaction processes. These features reduce friction within traditional financial systems and make it easier for both institutions and investors to move capital and access a wider range of assets.
”The firm believes that as the market continues to mature, tokenisation has enormous potential to enhance existing financial systems rather than replace them.
“For Australia, the challenge and opportunity will be ensuring local markets can keep pace with global developments and fully participate in what is emerging as a major structural shift in finance.”
