Trillion-Dollar Real-World Asset Tokenization Coming to Stellar Ecosystem: Can it Propel XLM Price to a New All-Time High?

• The Stellar blockchain network has positioned itself as a leader in the tokenization industry.
• Per recent reports, tokenized real-world assets on the network reached a whopping $341 million in total market value.

As tokenization gains popularity in the cryptocurrency and Blockchain industry, the Stellar blockchain network is building its reputation as one of the key networks spearheading adoption.

In the previous year, Stellar has not only made noticeable efforts to embrace tokenization, the network has also remained committed to championing the benefits and use cases of the technology. As recently reported, tokenization on the Stellar network reached new levels in 2023, as a result, Stellar is now being recognized as a leader in the industry.

Funds managed by prominent institutional players including Wisdom Tree, Bitbond, ABN AMBRO, which represent tokenized real-world assets that includes fiat currencies, gold and securities reached a total market cap of $341 million last year.

Messari also spotlighted remarkable growth levels with funds on the Stellar network. According to its latest Cryptocurrency Thesis, funds on the Stellar network have become the largest plurality of tokenized treasuries.

Additionally, these funds have emerged as the largest liquid instrument that any Wall Street firm has offered on-chain, including stablecoins.

Market experts predicts a promising future for tokenization

Tokenization is the process of issuing a digital representation of an asset on a blockchain. Industry experts have collectively made bullish predictions for the industry on different occasions. The forecasted trade volume for tokenized digital securities is expected to reach $5 trillion in 2030.

Stellar prides itself as a network designed, at its core, for asset tokenization, long before the technology gained popularity. As a result, Stellar offers flexibility for tokenization, by offering features that make it easy for issuers to build on, and move their assets to the broader market.

The Clawback functionality and other compliance features are some of the many that regulated entities will be able to access and leverage.

According to a report from 22.co, a digital asset management firm, tokenized assets could grow to $10 trillion within the next 10 years, if adoption from traditional financial (TradFi) institutions persists.

“We estimate that the market value for tokenized assets will be between $3.5 trillion in the bear-case scenario and $10 trillion in the bull case by 2030.” The report added, further stating that the convergence between crypto and traditional assets like fiat currencies and other similar assets, is poised to grow significantly.

With the continuous growth in the tokenization economy, Steller’s native token XLM, could benefit greatly from the new development in the long term. With Stellar’s tokenized assets skyrocketing in value, increased adoption could serve as a bullish catalyst for XLM to gain momentum in the crypto market. The asset trades at a press time price of $0.1109, down by more than 88% from its 2018 all-time high.