The Philippines has a $60 billion opportunity to transform its capital markets through asset tokenization, according to the white paper for Project Bayani: The Philippines’ Asset Tokenization Opportunity, published today by the Philippine Digital Asset Exchange (PDAX), Saison Capital, and Onigiri Capital.
This research sets out a future in which millions of Filipinos, already involved in mobile wallets and cryptocurrencies, leapfrog traditional finance (TradFi) and own investment products – government bonds, equities, mutual funds – in tokenized form.
The report estimates the tokenized asset market could reach $60 billion by 2030, led by public equities ($26 billion), government bonds ($24 billion), and mutual funds ($6 billion).
These estimates represent a tale of inclusion and empowerment fueled by digital assets in an emerging economy where nearly half the population was unbanked as recently as August.
The good news is that the country already has vibrant infrastructure to promote widespread adoption, according to Nichel Gaba, Founder and CEO of PDAX.
“The Philippines has a unique advantage: blockchain wallets are already mainstream,” gaba said in a press release Thursday. “We’re not starting from scratch. The infrastructure to deliver tokenized assets to millions of Filipinos already exists in their pockets. Our focus now is to connect that infrastructure to real, regulated financial products.”
Crypto ownership currently stands at 14%, dwarfing stocks (2.4%), bonds (<1%), and mutual funds, while major wallets like GCash, PDAX, Maya, and Coins.ph offer embedded blockchain features for seamless holding of cryptocurrencies and tokenized investments.
Tokenized bonds via PDAX and GCash have slashed barriers, enabling access from just 500 peso ($8.50) to democratize the government bond market. Nearly half of all government bond account holders now own them in tokenized form, signaling strong potential for mass adoption.
The Bureau of the Treasury is proving the concept through its partnership with PDAX and GCash, which are distributing tokenized government bonds nationwide and attracting retail investors at scale.
“This partnership brought government bonds directly to the fingertips of millions of Filipinos,” said Sharon P. Almanza, Treasurer of the Philippines. “It represents a bold leap forward in democratizing access to public financial instruments, further promoting financial inclusion.”
