The joint report by Ripple and Boston Consulting Group (BCG), titled “Approaching the Tokenization Tipping Point,” explores the rapidly accelerating adoption of asset tokenization worldwide. According to their analysis, the tokenization of real-world assets (RWAs) — including funds, bonds, real estate, commodities, and other financial instruments — is anticipated to grow significantly, from approximately USD 0.6 trillion in 2025 to USD 18.9 trillion by 2033, representing an impressive 53% compound annual growth rate.

This growth is driven by technological maturity, clearer regulatory frameworks, and increased institutional investment. Tokenization converts traditional financial instruments into digital tokens on blockchain networks, significantly enhancing liquidity, reducing intermediaries, and enabling fractional ownership. This process fosters operational efficiency, cost savings, faster transaction settlements, and expanded investor accessibility.

Notable trends include institutional adoption by major global banks, advancements in regulatory clarity (particularly in jurisdictions such as the US, Europe, UAE, and Singapore), and increasing demand from younger investors attracted by the innovative and accessible nature of tokenized assets.

However, the report highlights essential challenges such as regulatory fragmentation, interoperability issues, and infrastructure scalability that must be addressed collectively by financial institutions and regulatory bodies. The authors advocate for coordinated efforts across custody, compliance, and infrastructure to ensure tokenization scales effectively.

Tokenization is positioned not just as a technology solution, but as a foundational evolution of global finance infrastructure, enabling institutions to unlock new revenue streams and cater to emerging investor segments.