Experts Predict Key Trends in RWA Sector for 2024

Specialists have observed the growing popularity and adoption of stablecoin products. The market capitalization of Circle (USDC) and Tether (USDT) has already exceeded $115 billion, and this figure is expected to continue its ascent in 2024. Despite the increasing number of stablecoins entering the market, experts do not anticipate a significant decrease in the market share of USDC and USDT in the coming year.

Asset tokenization is unlocking fresh investment possibilities by enabling fractional ownership, offering programmable features, and enhancing transparency. Researchers anticipate that in 2024, issuers will increasingly introduce digitized alternative risk assets to the market.

According to RWA.xyz, at least 40 tokenization protocols are capable of streamlining private credit transactions on the blockchain. However, many of these protocols aim to create a borrower pool without clear matching of demand from buyers. It is expected that platforms will prioritize the needs of capital providers over asset creators.

Previously, tokenized assets operated in a regulatory gray area. However, in 2023, regulatory authorities in Singapore, the UK, Luxembourg, Hong Kong, the UAE, Japan, and other countries issued recommendations for this sector. It is anticipated that this trend will continue in 2024.

Researchers also noted the increasing momentum of institutional tokenization. Numerous multinational financial institutions are actively launching various products, signaling a growing interest in blockchain technology. The outlook for 2024 suggests that this trend will persist.