This fast world of finance brings new ways to invest through the assistance of technology, and tokenizing bonds might revolutionise everything, changing how people trade or make bonds in an entirely different perspective. Lamine Brahimi, co-founder of the digital asset company Taurus SA, believes the tokenized bond market could grow 30 times bigger by 2030.
What are tokenised bonds?
Tokenized bonds refer to the representation of traditional bonds, such as government or corporate bonds, on blockchain networks in a digital format and are traded there. The value and ownership of such bonds are essentially divided into tokens-small units that can be owned by individuals on the blockchain. It makes transactions faster, cheaper, and more efficient compared to traditional ways of doing things.
The tokenized bond market may surge to at least $300 billion by 2030, representing a 30x gain from current levels. Lamine Brahimi, co-founder of Taurus SA — an enterprise-grade digital asset company — told Cointelegraph these were base case figures pic.twitter.com/s72TtSuR9R
— D☢zzer🔥🧙♂️,🧙♂️Anomage (@megakolaps) January 26, 2025
Why the Tokenized Bond Market Is Growing
The tokenized bond market is estimated to grow to an enormous $300 billion in 2030, which is 30 times the amount it currently sits at $16.6 billion. This big growth is because tokenized bonds have a lot of benefits:
Faster Transactions: With blockchain technology, bond transactions can be completed in just seconds, compared to the days or weeks required in traditional methods.
Lower Costs: Tokenized bonds remove the need for middlemen, lowering costs for both buyers and sellers.
Ease to Own: A tokenized asset in the bonds creates an ownership wherein investors may get parts of bond ownership through even smaller money holdings.
The bigger picture: tokenized real-world assets
Tokenization isn’t just for bonds—it’s expanding to other real-world assets too. Stocks, commodities, and even real estate will be tokenized and traded on the blockchain. Experts think that the total market for tokenized real-world assets will touch the mark of an amazing $10 trillion by 2030. It’s all part of the bigger trend of moving financial systems to decentralised digital platforms.
Challenges Still Ahead
The full potential of tokenized bonds hasn’t been reached yet. Some pilot programs aren’t fully utilising blockchain’s benefits and still depend on human intermediaries, which can increase costs and slow things down. As the market develops, these inefficiencies will likely be fixed, unlocking the true value of tokenized bonds.
Conclusion.
Tokenized bonds are ready to change the future of finance. They offer faster transactions, lower costs, and easier access, which could completely transform how people invest. Even though challenges remain, growth projections in this market are evident as blockchain technology gains more traction in the financial sector. As we move towards 2030, tokenization might be the door opener to democratise investment opportunities for everyone.
