Tokenized Securities Market Size, Share, Growth And Industry Analysis By Type (Equity Token, Debt Token, Real Asset Tokens, And, Other), By Application (STO, And, ICO) Regional Forecast From 2024 To 2031

Updated On: 22 April 2024

TOKENIZED SECURITIES MARKET REPORT OVERVIEW 

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The global tokenized services market size grew rapidly in 2021, as per our research, the market is projected to grow substantially by 2031.

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Tokenized securities are the process of materializing the ownership of a security by providing or issuing a token. This token has to be registered on DLT or Distributed Ledager Technology. Tokenized securities can come in different form. They include investment fund, bond, as well as an equity.

Having a proper regulatory system with strict rules and regulations is very crucial ensure the safety of both the seller and buyer. They are being integrated into the market. This is considered as the latest trend in the market.

Blockchain forms a major part of the tokenization technology. There are many benefits of using these securities which include cheaper, and, faster transaction, and, higher transparency. All of these factors have played an important role in increasing the tokenized securities market share.

COVID-19 impact: Rapid Development of Digital and Technology Sector Increased Market Growth

The pandemic of COVID-19 completely changed the way in which all the markets functioned. Some of the industries faced heavy losses and faced difficulty while operating. However, some of the other sectors faced a steady growth and development due to the pandemic of COVID-19.

Similarly, the technology industry experienced growth due to factors like increase in usage of electronic gadgets like smart phones, laptops, and computers. Better internet penetration allowed the users to easily whatever they required on net. Prevalence of working at home was high during the pandemic. All of these factors propelled the growth of digital sector which in turn had a positive impact on tokenized securities market growth.

LATEST TRENDS

"Creation of Regulatory Framework and Introduction of Other Changes to Increase Market Growth"

Several changes and developments have taken place in the tokenized securities market from the past few years. One of the newest trends that can be witnessed in the market is the creation of a regulatory framework. It is highly important to have a digital asset ecosystem that is properly regulated.

When a digital ecosystem is properly regulated it ensures customer protection, and integrity. Another important development is the immense block-chain powered transactions. All of these are considered as the latest trend in the market.

TOKENIZED SECURITIES MARKET SEGMENTATION

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• By Type:

The market can be divided on the basis of type into the following segments:

Equity token, debt token, real asset tokens, and, other. The equity token segment is projected to hold the dominant market share through 2031 the forecasting period.

• By Application:

The market can be divided on the basis of application into the following segments:

STO, and, ICO. STO segment is predicted to dominate the market through 2031.

DRIVING FACTORS

"Implementation of Blockchain Technology into Tokenized securities to Amplify Market Growth"

Some of the newly evolving technologies in the market include Artificial Intelligence (AI), machine learning, and blockchain technology. Blockchain technology is now being integrated into the tokenized securities sector as well and this has several benefits. With the use of blockchain, assets and tradable goods can be securitized.

There are benefits of using tokenized securities. This includes greater liquidity. When assets or private assets are tokenized, they can be very easily sold on primary as well as secondary market as per the choice of the issuer. As a result, more traders will get to know about the assets that are being sold. Using tokenized security will provide liquidity premium to the sellers. Assets such as pieces of art can also be tokenized. All of these factors are amplifying the growth of the market.

"Cheaper Transactions and Better Transparency to Drive Market Growth"

The benefits of tokenizing securities is not just limited to higher liquidity. Some of the other advantages include quicker, and, cheaper transactions. Better transparency is available with the help of these tokens. Legal rights and responsibilities of the token holder will be properly recorded in the form of documents.

Because of these the users and customers will have an idea about who they are dealing with. This increases their sense of security. All the transactions related to tokenized securities is carried out with the assistance of smart contracts. Smart contracts are algorithms which are equipped with blockchain technology. This blockchain technology has certain actions that can trigger. Triggering will be based on a few predefined parameters. Smart contracts will automate the entire process and therefore remove the need to use manual administration. This will reduce the cost of transactions and the process will also take place quickly. All of these factors can propel the market growth.

RESTRAINING FACTOR

"Problems related to Regulations to Deteriorate Market Growth"

One of the major problems that is associated with these securities is regulatory alignment. Al the advantages of tokenization can come to nothing if they are not regulated properly as this does not allow any kind of international exchange to take place. This problem can prevent market growth.

Ever block-chain based platform or software is de facto decentralized. It is very important to create a properly regulated environment in the tokenized security market. Another problem that is associated with these securities is the connection or linkage that tokenized security will have with real assets. All of these factors can bring down the market growth.

TOKENIZED SECURITIES MARKET REGIONAL INSIGHTS 

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"North America to Dominate Market in Upcoming Years "

The region that is predicted o take up the largest share in the market is North. It can occupy up to one-fourth of the market share. The main reason that has led to the growth of this market in this region is the evolvement of finance sector. With the implementation of technology into finance many new innovations ae being seen.

Many companies are taking tokenized security to make their assets and properties more liquid. When assets are tokenized their transparency increases allowing more people to come across them.  Also, automated transactions prove to be much cheaper and faster. All of these factors are propelling the market growth and development.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profile

• Krypton Capital (Ukraine)
• Jibrel (Switzerland)
• SpaceFund (Texas)
• VAULTEX (U.K.)
• Interprom Mining (Bulgaria)
• SEFtoken (U.S.)
• Itbond (India)
• ESICO (India)

Report Coverage

The report provides an insight into industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations. The report also lists the key industry players to understand the competition.