In the year Illicit Assets To Reach $16T By 2030 – Report

According to the Boston Consulting Group (BCG), the total amount of tokenized illiquid assets, including real estate and natural resources, could reach $16.1 trillion by 2030.

In a new report from BCG and ADDX, the digital exchange for private markets, authors including BCG managing director Sumit Kumar and ADDX founder Darius Liu say that “a large portion of the world’s wealth is currently locked up in illegal assets.”

According to the report, illegal assets include pre-IPO stocks, real estate, private debt, income from small and medium businesses, physical art, exotic beverages, private funds, wholesale bonds and more.

Reasons for this lack of property include limited purchasing power for mass investors, lack of wealth manager knowledge, limited access – for example when properties are limited to high clicks (such as fine art and antique cars), regulatory barriers, and situations where other users have difficulty finding or trading properties.

The market, which is expected to exceed $2.3 billion in 2021 and reach $5.6 billion by 2026, can address this problem, according to the report.

The authors added that in the past two years, the amount of global digital daily transactions in 2018 It has increased from 30 billion euros in 2020 to 150 billion euros in 2022. the world.”

In the year By 2030, the authors predict the potential for on-chain asset tokens to reach $16.1 trillion — mostly from financial assets (such as insurance policies, pensions, and alternative investments), home equity, and other tokenized assets, such as infrastructure projects, car fleets, and patents.

In the year Modeling Global Illicit Assets by 2030. Source: Boston Consulting Group

The authors note that this is a “very conservative estimate” and that in a best-case scenario, global illicit assets could reach $68 trillion.

However, the capacity of token assets varies across countries due to different regulatory frameworks and asset class sizes.

In Singapore, the Monetary Authority recently launched Project Guardian, which explores decentralized finance (DeFi) applications in crowdfunding markets by establishing a fundraising pool and depository to perform lending and borrowing processes. Chain.

In addition to Singapore, token issuance is regulated in Hong Kong, Japan, the European Union, the United Kingdom, the United States, the United Arab Emirates, Germany, Austria, and Switzerland.

Other authors in the report include BCG project leader Rajaram Suresh, associate director Bernhard Kronfellner and BCG consultant Aditya Kaul:

“An on-chain asset token offers an opportunity to overcome these barriers to asset dispossession as well as the current traditional system of fragmentation.”

Real estate could be one of the illiquid assets in DeFi that could benefit from tokenization by investors looking for real-world asset-backed investments.

Cointelegraph research terminal real estate assets account for more than 40% of the pipeline for some technology providers, making it the leading sector for security token offerings.

Earlier this month, digital asset investment platform ZeroCap announced that companies on the Australian Securities Exchange (ASX) will be able to trade tokenized bonds, shares, funds or carbon credits after a successful proof-of-concept.