- Tokenized funds may grow to $600B by 2030, offering investors faster, more accessible asset management with $100B in annual returns.
- DLT-based tokenization could add $180B to investment markets, with demand rising from both traditional and virtual asset investors.
- Aptos powers tokenized assets with low fees, high-speed transactions, and user-friendly access, boosting DeFi in emerging markets.
Aptos Labs, alongside partners BCG and Invesco, predicts an asset management revolution through tokenization. Virtual asset owners represent $290 billion in potential demand today. This figure could rise, with assets under management (AuM) in tokenized funds projected to reach $600 billion by 2030. Additionally, tokenized funds could yield $100 billion annually, benefiting both investors and financial institutions.
Tokenization digitizes asset ownership, enhancing transparency and accessibility. This method, built on Distributed Ledger Technology (DLT), enables faster transactions and lower operational friction. Furthermore, as DLT evolves, smart contracts may automate complex processes, improving efficiency. Interest in DLT, especially within asset management, is growing as institutions explore innovative applications, including cross-border payments and fund tokenization.
We are in the midst of another asset management revolution—here’s why:
– Virtual asset owners represent $290B in potential demand today
– The tokenization of existing mutual funds and ETFs could drive AuM growth to $600B by 2030
– With near-instant transactions and liquidity,… pic.twitter.com/c5LPXb4HH6— Aptos Labs (@AptosLabs) October 29, 2024
Transformative Potential of Tokenized Assets
By mid-2024, tokenized fund assets surpassed $2 billion, indicating strong investor demand. This rapid growth signals mounting interest among retail and institutional investors. As regulatory clarity advances and central bank digital currencies (CBDCs) gain traction, demand for tokenized assets is expected to rise further.
Significantly, tokenization offers unique features, such as 24/7 accessibility and near-instant transferability, making it appealing to various investor types. Tokenized mutual funds could unlock an additional $180 billion investment market. Investors might see gains of $400 million from intra-day value fluctuations, underscoring tokenization’s financial potential.
Aptos’ Role in Expanding Blockchain and DeFi
Aptos, a Layer-1 blockchain, focuses on scalability and user accessibility. Recently, the network integrated Tether’s USDT, marking the first stablecoin on a Move-powered blockchain. Consequently, this integration promises lower fees, high transaction speeds, and new applications for USDT, especially in emerging markets.
Moreover, Aptos’ performance metrics reflect its commitment to scalability. This year, daily active users nearly doubled, and gas fees remain minimal. Notably, Aptos achieved a record-breaking 160 million transactions in a single day, with consistent sub-second latency. These developments highlight Aptos’ readiness to support expanding decentralized finance (DeFi) use cases.