The market for crypto-backed tokenized assets could exceed $2 trillion within five years, as major institutions and regulators advance the infrastructure needed to integrate them into global finance, according to Ritesh Kakkad, Co-Founder of XDC Network.
“Stablecoins, which are pegged to real-world currencies, are the most mature tokenized asset type,” Kakkad told Benzinga, noting the market’s expected growth from $256 billion today to about $2 trillion in 2028.
He pointed to asset managers including BlackRock (NYSE:BLK), Bank of America (NYSE:BAC), and Coinbase (NASDAQ:COIN) developing tokenized equity and money-market funds.
BlackRock’s BUILD Funds, for example, combine on-chain and traditional money market infrastructure.
Kakkad said enabling policy and better-defined regulations have been critical to this shift, citing the U.S., U.K., and Singapore as …