Tokenized Finance Nears Tipping Point as Market Forecast Hits $19 Trillion by 2033

The global financial infrastructure is entering a new phase, with tokenized real-world assets projected to surge from $0.6 trillion in 2024 to $18.9 trillion by 2033, according to a joint report by Ripple and Boston Consulting Group (BCG). The report, Approaching the Tokenization Tipping Point, outlines a compound annual growth rate of 53 percent, driven by advances in technology, maturing regulation, and mounting institutional interest.

The report calls tokenization not a peripheral innovation, but a foundational redesign of the financial system’s infrastructure. Tokenized assets transform static holdings into programmable, interoperable tools recorded on shared ledgers. This enables round-the-clock transaction settlement, fractional ownership, and embedded compliance, offering a fundamental improvement over legacy financial rails.

“Tokenization is transforming financial assets into programmable, interoperable tools, recorded on shared digital ledgers. This enables 24/7 transactions, fractional ownership, and automated compliance,” said Tibor Merey, Managing Director and Partner at BCG.

Three Phases of Adoption

The research identifies a three-phase path to full integration:

Phase 1: Low-risk adoption — Focused on tokenizing traditional instruments such as money market funds and bonds. BlackRock’s tokenized USD institutional money market fund and initiatives from the Bank for International Settlements mark early examples.

Phase 2: Institutional expansion — Includes tokenization of complex and higher-yield assets like private credit, real estate, and structured products. Players such as Citi and Société Générale are piloting projects using permissioned-public blockchains to improve liquidity and interoperability.

Phase 3: Market transformation — Tokenized assets become embedded in workflows across asset classes such as private equity and infrastructure. This stage requires scalable infrastructure, secondary market liquidity, and regulatory frameworks to support full-cycle servicing.

Markus Infanger, SVP of RippleX, stated, “The market is transitioning from tokenized assets simply sitting on-chain to integrating into real economic activity.”

The report emphasizes a reinforcing dynamic between institutional supply and client demand. As more institutions issue tokenized instruments, investor adoption follows, expanding liquidity and accelerating innovation. Over time, the ecosystem becomes self-sustaining, similar to digital adoption curves in prior financial transformations.

Laurent Marochini, CEO of Standard Chartered Luxembourg, added, “Tokenization is advancing at different speeds across asset classes—fastest where it delivers real efficiencies and where conditions allow for secondary markets to emerge.”

Global Differentiation and Regulatory Readiness

Regulatory momentum is another key enabler. Switzerland, the UAE, and the EU have established comprehensive frameworks, while the U.S. is expected to follow. Asia-Pacific jurisdictions including Japan, Singapore, and Hong Kong are running industry consortia and regulatory sandboxes. In Latin America and Africa, adoption is being shaped by fintech innovation, stablecoin rails, and mobile-first platforms.

Still, gaps persist. The report highlights infrastructure fragmentation, lack of interoperability in settlement, and unclear legal treatment in some jurisdictions as hurdles to be addressed through industry-wide collaboration.

Ripple and BCG identify five major use cases where tokenization is already creating measurable efficiencies:

• Investment-Grade Bonds – Automation through smart contracts reduces issuance and settlement costs by 40–60%. Savings of $40–60 million annually for $100 billion in issuance are possible.
• Real Estate – Fractionalization and digital ownership in commercial real estate could reduce admin costs by $100–150 million and unlock $500 million to $1 billion in capital for a $5 billion fund.
• Collateral & Liquidity Management – Tokenized repo transactions enable T+0 settlement and reduce idle collateral. Annual savings of $150–300 million are estimated for a $100 billion portfolio.
• Trade Finance & Working Capital – Real-time invoice settlement and tokenized receivables could yield $2–4 billion in annual capital benefits for firms processing $50 billion in trade volume.
• Treasury & Cash Management – Corporates managing $10 billion in payments can realize $55–140 million in annual savings through improved FX, reduced capital buffers, and instant liquidity.

Barriers to Scale

Despite encouraging trends, the report cautions against fragmentation. It notes that many institutions are developing proprietary settlement systems, which risks recreating the very inefficiencies tokenization seeks to eliminate. Instead, Ripple and BCG advocate for coordinated infrastructure, unified token standards, and collaborative frameworks.

“Without industry alignment on shared infrastructure, we risk creating more silos and fragmentation—the very challenges we aim to overcome,” said Jorgen Ouaknine, Global Head of Innovation & Digital Assets at Euroclear.

The report also underlines the importance of trust. Institutional adoption requires performance-based proof—clients need to experience smoother, cheaper, and faster transactions before tokenization earns credibility.

The study outlines two strategic tracks:

• System builders (e.g., global banks and custodians) must invest in infrastructure—wallets, custody, compliance rails—while collaborating on standards and liquidity frameworks.
• Scalers and integrators (e.g., mid-size institutions and regional banks) should focus on commercially viable use cases such as tokenized funds, real estate, and trade finance. Fast integration and control over custody and client relationships are emphasized.
• Standard Chartered, DZ Bank, and BBVA Switzerland are among the firms already operationalizing tokenization across issuance, custody, and investment products.

Bernhard Kronfellner, Partner at BCG, concluded, “Tokenization is no longer just a concept—it’s the foundation for the future of global finance.”

Ultimately, the report frames tokenization as the first layer of an entirely new financial operating system—where on-chain collateral, AI-managed assets, and programmable liquidity redefine capital markets.

As institutions move from experimentation to scaled deployment, Ripple and BCG assert that tokenization will shift from a promising innovation to a financial imperative—reshaping the infrastructure that powers global commerce.