Ripple and BCG Forecast $18T Tokenization Boom as Cap Attracts Investment
Traditional finance continues to deepen its involvement in blockchain innovation, as recent developments highlight growing interest in tokenized real-world assets and yield-generating stablecoins.
A new report from Ripple and Boston Consulting Group projects the tokenized asset market could reach $18.9 trillion by 2033, while asset management giant Franklin Templeton has led an $8 million seed round in Cap, a startup aiming to launch a decentralized, interest-bearing stablecoin.
Tokenized Asset Market Poised for Explosive Growth, Could Hit $18.9 Trillion by 2033, Says Ripple-BCG Report
The global market for tokenized financial instruments—commonly referred to as real-world assets (RWAs)—could surge to a staggering $18.9 trillion by 2033, according to a new joint report from Boston Consulting Group (BCG) and blockchain infrastructure giant Ripple.
The report marks a major inflection point in the digital asset industry, suggesting tokenization is approaching a ”tipping point” driven by accelerating institutional adoption, evolving regulations, and maturing technology.
The forecast, which anticipates an average compound annual growth rate (CAGR) of 53%, reflects a middle-of-the-road scenario between a conservative estimate of $12 trillion and an optimistic $23.4 trillion in tokenized assets over the next eight years. Such growth would mark a profound transformation in how traditional financial markets operate—ushering in an era of programmable money, 24/7 liquidity, and radically improved efficiency.
Tokenization—the process of digitally representing ownership of real-world assets like bonds, real estate, or commodities on a blockchain—is no longer theoretical. It has become one of the most compelling use cases for blockchain technology, attracting attention from major traditional financial institutions seeking cost reductions and enhanced liquidity.
“[The] technology is ready, regulation is evolving, and foundational use cases are in the market,” said Martijn Siebrand, Digital Assets Program Manager at Dutch banking giant ABN AMRO.
JPMorgan's Kinexys platform, for instance, has already processed over $1.5 trillion in tokenized transactions and is seeing more than $2 billion in daily volume. Meanwhile, BlackRock’s tokenized money market fund, BUIDL, issued in collaboration with Securitize, is approaching $2 billion in assets under management (AUM), gaining traction as a go-to tool for decentralized finance (DeFi) applications.
Early Successes: Bonds, Treasuries, and Liquidity On-Demand
Among the most mature use cases are tokenized government bonds and US Treasuries. These instruments are being utilized by corporate treasurers to manage idle cash in real time—moving funds into short-term government bonds directly from digital wallets without the need for intermediaries.
The report also highlights private credit as a sector ripe for disruption. By making traditionally illiquid and opaque credit instruments accessible on-chain, tokenization offers investors transparent pricing and fractional ownership, democratizing access to markets that were once the domain of institutions only.
Carbon markets are another promising frontier. Blockchain-powered registries could enhance transparency, traceability, and auditability of carbon credits—an increasingly important feature as companies face mounting regulatory pressure to prove environmental compliance.
Despite the positive trajectory, the report outlines five critical barriers preventing widespread adoption:
Fragmented Infrastructure – Most tokenized assets operate in closed systems, limiting network effects and scalability.
Limited Interoperability – Lack of standardized protocols prevents seamless communication between platforms.
Uneven Regulatory Progress – Regulatory clarity is inconsistent across jurisdictions, slowing global adoption.
Custody Complexities – There’s no universal standard for how tokenized assets should be held and secured.
Smart Contract Fragmentation – A lack of uniformity in smart contract designs hampers widespread use.
As a result, many tokenized transactions remain reliant on off-chain components for final settlement, diminishing the very efficiency gains that blockchain technology promises. For example, delivery-versus-payment (DvP) capabilities, which are critical for unlocking secondary market liquidity, remain largely underdeveloped across most platforms.
Global Legal Landscape: A Tale of Two Worlds
On the legal and regulatory front, the report emphasizes a clear divide. Countries like Switzerland, Singapore, the EU, and the UAE have established progressive frameworks for tokenized securities, laying the groundwork for innovation and cross-border integration. In contrast, regulatory regimes in India and China remain restrictive or ill-defined, forcing institutions to navigate a patchwork of compliance requirements and tailor infrastructure on a per-jurisdiction basis.
BCG and Ripple segment the evolution of tokenization into three distinct phases:
Foundational Phase – Low-risk adoption of familiar instruments such as government bonds and funds.
Expansion Phase – Broadening into complex financial products like private credit and tokenized real estate.
Transformation Phase – Full-scale tokenization of illiquid markets including infrastructure and private equity.
Currently, most institutional players remain in the first or second phase. However, achieving the third stage—full market transformation—will depend heavily on resolving interoperability issues, standardizing smart contracts, and harmonizing regulatory frameworks.
Tokenization: A Cost-Saving Catalyst
The report suggests that cost is becoming less of a barrier for institutions. Focused pilot projects can now be launched for less than $2 million, while comprehensive platforms that handle issuance, custody, trading, and compliance can range up to $100 million for large-scale financial institutions.
Tokenization offers significant cost savings across a variety of functions. Processes like bond issuance, real estate fund tokenization, and collateral management can be streamlined through smart contracts, reducing administrative overhead and accelerating settlement timelines.
While the promise of tokenization is immense, the report also comes with a cautionary note.
”Without industry-wide coordinated action, the same silos and fragmentation tokenization seeks to eliminate could reemerge in digital form,” warned Jorgen Ouaknine, Global Head of Innovation and Digital Assets at Euroclear, a leading financial market infrastructure provider.
To avoid this pitfall, the report calls for collaborative action among financial institutions, technology providers, and regulators to establish universal standards and open architectures.
Franklin Templeton Backs Cap’s Vision of a Yield-Bearing Stablecoin With $8M Seed Investment
In other news, global asset manager Franklin Templeton has led an $8 million seed funding round into Cap, a blockchain startup developing a next-generation interest-bearing stablecoin and accompanying lending platform. The round also included backing from heavyweights like Susquehanna, Triton Capital, Nomura’s crypto arm Laser Digital, and market maker GSR—cementing Cap’s position at the intersection of traditional finance and cutting-edge crypto infrastructure.
This institutional backing comes hot on the heels of a $1.1 million community round raised on the crowdfunding platform Echo, created by crypto personality Jordan “Cobie” Fish. Cap also counts among its early supporters a cadre of influential crypto angels including Spencer Noon, LayerZero founder Bryan Pellegrino, Blockworks co-founder Jason Yanowitz, and prominent investors connected to EtherFi, Steakhouse Financial, and Meteoria.
At the core of Cap’s offering is cUSD, a stablecoin minted by depositing USDC or USDT. Unlike traditional stablecoins that sit idle, cUSD can be staked to earn yield derived from real-world institutional borrowing. The protocol is architected around EigenLayer’s shared security model, allowing Cap to tap into Ethereum’s restaking ecosystem for both security and scalability.
Though transactions ultimately settle on Ethereum mainnet, Cap has aligned its growth strategy with MegaETH, an Ethereum Layer 2 still in its early days but designed as a technically superior alternative to rollup-centric solutions. MegaETH is built to optimize for real-time applications with low latency and high throughput, making it a natural home for an ambitious project like Cap.
A New Yield Paradigm: Borrowing From the Crowd
Cap’s yield-bearing mechanics are strikingly different from legacy systems. Rather than setting fixed interest rates, the protocol “outsources” yield generation to a decentralized network of operators, ranging from high-frequency trading firms and private equity shops to DeFi protocols and real-world asset platforms.
These operators borrow cUSD from minters and stake providers to execute yield-generating strategies, creating a market-determined interest rate reflective of actual capital demand.
Institutions like Franklin Templeton—now an investor in the protocol—can themselves become borrowers, tapping into Cap’s decentralized lending pool while offering yield to crypto-native lenders. The protocol charges a 10% fee on yield generated, while users retain the rest.
Additionally, Cap introduces a safeguard in the form of loan insurance, which ensures that depositors are repaid even in the case of borrower defaults.
While Cap’s architecture offers the promise of truly decentralized money markets, the team is not shy about acknowledging the risks.
“Novel opportunities do not come without risk,” Cap’s team wrote in a recent blog post, listing several points of exposure: dependency on EigenLayer’s restaking mechanism, potential depegs of its cUSD stablecoin, bridge vulnerabilities if cUSD is used off Ethereum, and inherent smart contract risks stemming from the protocol’s non-custodial nature.
These warnings are timely, especially as regulators in the US inch closer to comprehensive stablecoin legislation. Lawmakers have expressed particular concern around interest-bearing stablecoins, arguing that such instruments may blur the line between a stable digital dollar and unregulated securities. Cap’s structure—while technically innovative—could soon face legal scrutiny depending on how forthcoming bills address yield-generating dollar-pegged assets.
Ripple and BCG Forecast $18T Tokenization Boom as Cap Attracts Investment
Traditional finance continues to deepen its involvement in blockchain innovation, as recent developments highlight growing interest in tokenized real-world assets and yield-generating stablecoins.
A new report from Ripple and Boston Consulting Group projects the tokenized asset market could reach $18.9 trillion by 2033, while asset management giant Franklin Templeton has led an $8 million seed round in Cap, a startup aiming to launch a decentralized, interest-bearing stablecoin.
Tokenized Asset Market Poised for Explosive Growth, Could Hit $18.9 Trillion by 2033, Says Ripple-BCG Report
The global market for tokenized financial instruments—commonly referred to as real-world assets (RWAs)—could surge to a staggering $18.9 trillion by 2033, according to a new joint report from Boston Consulting Group (BCG) and blockchain infrastructure giant Ripple.
The report marks a major inflection point in the digital asset industry, suggesting tokenization is approaching a ”tipping point” driven by accelerating institutional adoption, evolving regulations, and maturing technology.
The forecast, which anticipates an average compound annual growth rate (CAGR) of 53%, reflects a middle-of-the-road scenario between a conservative estimate of $12 trillion and an optimistic $23.4 trillion in tokenized assets over the next eight years. Such growth would mark a profound transformation in how traditional financial markets operate—ushering in an era of programmable money, 24/7 liquidity, and radically improved efficiency.
Tokenization—the process of digitally representing ownership of real-world assets like bonds, real estate, or commodities on a blockchain—is no longer theoretical. It has become one of the most compelling use cases for blockchain technology, attracting attention from major traditional financial institutions seeking cost reductions and enhanced liquidity.
“[The] technology is ready, regulation is evolving, and foundational use cases are in the market,” said Martijn Siebrand, Digital Assets Program Manager at Dutch banking giant ABN AMRO.
JPMorgan's Kinexys platform, for instance, has already processed over $1.5 trillion in tokenized transactions and is seeing more than $2 billion in daily volume. Meanwhile, BlackRock’s tokenized money market fund, BUIDL, issued in collaboration with Securitize, is approaching $2 billion in assets under management (AUM), gaining traction as a go-to tool for decentralized finance (DeFi) applications.
Early Successes: Bonds, Treasuries, and Liquidity On-Demand
Among the most mature use cases are tokenized government bonds and US Treasuries. These instruments are being utilized by corporate treasurers to manage idle cash in real time—moving funds into short-term government bonds directly from digital wallets without the need for intermediaries.
The report also highlights private credit as a sector ripe for disruption. By making traditionally illiquid and opaque credit instruments accessible on-chain, tokenization offers investors transparent pricing and fractional ownership, democratizing access to markets that were once the domain of institutions only.
Carbon markets are another promising frontier. Blockchain-powered registries could enhance transparency, traceability, and auditability of carbon credits—an increasingly important feature as companies face mounting regulatory pressure to prove environmental compliance.
Despite the positive trajectory, the report outlines five critical barriers preventing widespread adoption:
Fragmented Infrastructure – Most tokenized assets operate in closed systems, limiting network effects and scalability.
Limited Interoperability – Lack of standardized protocols prevents seamless communication between platforms.
Uneven Regulatory Progress – Regulatory clarity is inconsistent across jurisdictions, slowing global adoption.
Custody Complexities – There’s no universal standard for how tokenized assets should be held and secured.
Smart Contract Fragmentation – A lack of uniformity in smart contract designs hampers widespread use.
As a result, many tokenized transactions remain reliant on off-chain components for final settlement, diminishing the very efficiency gains that blockchain technology promises. For example, delivery-versus-payment (DvP) capabilities, which are critical for unlocking secondary market liquidity, remain largely underdeveloped across most platforms.
Global Legal Landscape: A Tale of Two Worlds
On the legal and regulatory front, the report emphasizes a clear divide. Countries like Switzerland, Singapore, the EU, and the UAE have established progressive frameworks for tokenized securities, laying the groundwork for innovation and cross-border integration. In contrast, regulatory regimes in India and China remain restrictive or ill-defined, forcing institutions to navigate a patchwork of compliance requirements and tailor infrastructure on a per-jurisdiction basis.
BCG and Ripple segment the evolution of tokenization into three distinct phases:
Foundational Phase – Low-risk adoption of familiar instruments such as government bonds and funds.
Expansion Phase – Broadening into complex financial products like private credit and tokenized real estate.
Transformation Phase – Full-scale tokenization of illiquid markets including infrastructure and private equity.
Currently, most institutional players remain in the first or second phase. However, achieving the third stage—full market transformation—will depend heavily on resolving interoperability issues, standardizing smart contracts, and harmonizing regulatory frameworks.
Tokenization: A Cost-Saving Catalyst
The report suggests that cost is becoming less of a barrier for institutions. Focused pilot projects can now be launched for less than $2 million, while comprehensive platforms that handle issuance, custody, trading, and compliance can range up to $100 million for large-scale financial institutions.
Tokenization offers significant cost savings across a variety of functions. Processes like bond issuance, real estate fund tokenization, and collateral management can be streamlined through smart contracts, reducing administrative overhead and accelerating settlement timelines.
While the promise of tokenization is immense, the report also comes with a cautionary note.
”Without industry-wide coordinated action, the same silos and fragmentation tokenization seeks to eliminate could reemerge in digital form,” warned Jorgen Ouaknine, Global Head of Innovation and Digital Assets at Euroclear, a leading financial market infrastructure provider.
To avoid this pitfall, the report calls for collaborative action among financial institutions, technology providers, and regulators to establish universal standards and open architectures.
Franklin Templeton Backs Cap’s Vision of a Yield-Bearing Stablecoin With $8M Seed Investment
In other news, global asset manager Franklin Templeton has led an $8 million seed funding round into Cap, a blockchain startup developing a next-generation interest-bearing stablecoin and accompanying lending platform. The round also included backing from heavyweights like Susquehanna, Triton Capital, Nomura’s crypto arm Laser Digital, and market maker GSR—cementing Cap’s position at the intersection of traditional finance and cutting-edge crypto infrastructure.
This institutional backing comes hot on the heels of a $1.1 million community round raised on the crowdfunding platform Echo, created by crypto personality Jordan “Cobie” Fish. Cap also counts among its early supporters a cadre of influential crypto angels including Spencer Noon, LayerZero founder Bryan Pellegrino, Blockworks co-founder Jason Yanowitz, and prominent investors connected to EtherFi, Steakhouse Financial, and Meteoria.
At the core of Cap’s offering is cUSD, a stablecoin minted by depositing USDC or USDT. Unlike traditional stablecoins that sit idle, cUSD can be staked to earn yield derived from real-world institutional borrowing. The protocol is architected around EigenLayer’s shared security model, allowing Cap to tap into Ethereum’s restaking ecosystem for both security and scalability.
Though transactions ultimately settle on Ethereum mainnet, Cap has aligned its growth strategy with MegaETH, an Ethereum Layer 2 still in its early days but designed as a technically superior alternative to rollup-centric solutions. MegaETH is built to optimize for real-time applications with low latency and high throughput, making it a natural home for an ambitious project like Cap.
A New Yield Paradigm: Borrowing From the Crowd
Cap’s yield-bearing mechanics are strikingly different from legacy systems. Rather than setting fixed interest rates, the protocol “outsources” yield generation to a decentralized network of operators, ranging from high-frequency trading firms and private equity shops to DeFi protocols and real-world asset platforms.
These operators borrow cUSD from minters and stake providers to execute yield-generating strategies, creating a market-determined interest rate reflective of actual capital demand.
Institutions like Franklin Templeton—now an investor in the protocol—can themselves become borrowers, tapping into Cap’s decentralized lending pool while offering yield to crypto-native lenders. The protocol charges a 10% fee on yield generated, while users retain the rest.
Additionally, Cap introduces a safeguard in the form of loan insurance, which ensures that depositors are repaid even in the case of borrower defaults.
While Cap’s architecture offers the promise of truly decentralized money markets, the team is not shy about acknowledging the risks.
“Novel opportunities do not come without risk,” Cap’s team wrote in a recent blog post, listing several points of exposure: dependency on EigenLayer’s restaking mechanism, potential depegs of its cUSD stablecoin, bridge vulnerabilities if cUSD is used off Ethereum, and inherent smart contract risks stemming from the protocol’s non-custodial nature.
These warnings are timely, especially as regulators in the US inch closer to comprehensive stablecoin legislation. Lawmakers have expressed particular concern around interest-bearing stablecoins, arguing that such instruments may blur the line between a stable digital dollar and unregulated securities. Cap’s structure—while technically innovative—could soon face legal scrutiny depending on how forthcoming bills address yield-generating dollar-pegged assets.