Tracy Jin, the operating director of MEXC cryptocurrency exchange, warns that tokenizing real-world assets (RWA) comes with many centralized risks, including censorship, liquidation issues, legal uncertainties, cybersecurity risks, and the potential for asset seizure by governments or third parties.
In an interview with Cointelegraph, Jin believes that as long as tokenized assets remain within the regulatory scope of government agencies and centralized intermediaries, "tokenization will only be a new version of the old financial infrastructure, not a financial revolution."
"Most tokenized assets will be issued on licensed or semi-centralized blockchains, facilitating authorities to impose restrictions or seize assets. Tokenizing assets like real estate or bonds remains closely tied to national legal systems."
Jin emphasizes that if the asset or token-issuing company belongs to a country with an unstable legal environment or volatile political situation, the risk of seizure becomes even higher.
RWA tokenization is predicted to become a trillion-dollar field in the next decade, as global assets are brought onto blockchain, accelerating cash flow circulation and expanding capital market access.
Currently, according to data from RWA.XYZ, the total value of real-world assets tokenized on blockchain has reached over $19.6 billion, not including stablecoins - a sector that has exceeded $200 billion in market capitalization in December 2024.
Research reports from Tren Finance surveying major financial institutions like Citi, Standard Chartered, and McKinsey & Company show vastly different market size predictions for RWA in 2030, ranging from $4,000 billion to $30,000 billion.
McKinsey & Company provides a more conservative estimate, predicting the RWA market will reach between $2,000 billion and $4,000 billion by 2030. Meanwhile, institutions like Standard Chartered and Polygon blockchain network leaders expect the figure to reach $30,000 billion in the next decade.
Disclaimer: The article is for informational purposes only, not investment advice. Investors should thoroughly research before making decisions. We are not responsible for your investment choices.
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