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Tokenized bonds will be a $1 trillion market by 2028, the latest news on the future of asset tokenization.
Research and Markets’ “Blockchain and Cryptocurrency Market Overview 2025” noted that the blockchain sector saw explosive growth in 2024, boosted ETFs, the election of Donald Trump in the US, and improved regulatory clarity.
By 2024, the number of digital asset holders will grow by 30% year-on-year to reach 560 million, the report revealed. Emerging markets led growth, with South America and Oceania emerging as the fastest growing hubs. According to the report, the majority of digital asset owners are speculators and hodlers, with 65% of “crypto” holders “adopting a long-term buy-and-hold strategy.”
Speculation aside, the report said tokenization remains the blockchain application with the highest potential. It projects that tokenized bonds, especially by 2028, will hit $1 trillion.
Three weeks into 2025, some major banks have already announced efforts to tokenize the milestones. In Singapore, the second largest bank OCBC announced a new solution that allows clients to tokenize corporate assets and sell them to accredited investors. The solution would lower the minimum investment from $183,000 to $730.
American financial firm Northern Trust (NASDAQ: NTRS ) also recently announced that it will launch tokenized green bonds for the National University of Singapore later this year.
Even in China, where the government has long banned digital assets, tokenization is taking root. Zhuhai Huafa Group, a Chinese state-owned holding company, recently issued a $190 million digital bond on the HSBC Orion Blockchain platform. The bond will be available to Chinese clients through the Hong Kong Stock Exchange (HKEX) and international investors through Euroclear and Clearstream.
The EU will also solidify to play a vital role in the tokenization industry, with mica laying the groundwork on the regulatory front. On Monday, EU finance ministers met to further discuss tokenization and how the region can support local solutions amid stiff competition from Asian and American firms.
The bond market was the largest market for tokenization. However, this technology can be applied to almost every other sector. In a recent interview, MasterCard (NASDAQ: MA ) Chief Digital Officer Pablo Fourez revealed that Payments Giant is aiming to tokenize all online payments by 2030 to eliminate the need for card numbers, passwords and codes, which are havens for crime.
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