Beyond Real Estate: The 7 Sectors Revolutionizing Asset Tokenization

KEY TAKEAWAYS

Seven distinct asset classes beyond real estate are experiencing rapid blockchain adoption, representing a $16 trillion opportunity. Private credit commands $14 billion (58% market share), commodities reach $1.2 billion, infrastructure grows at 41.6% annually, and securities target $30 trillion addressable markets.

Private Credit Dominance: $14B market (58% of tokenized RWAs), led by Figure Technologies’ $11.7B in on-chain loans

Commodities Growth: $1.2B market with 90% concentration in tokenized gold (Pax Gold, Tether Gold)

Infrastructure Expansion: 41.6% CAGR to projected $90.8B by 2034, validated by Enel’s MiCAcompliant renewable energy tokens

Securities Opportunity: $30T target across stocks, bonds, and funds as BlackRock ($2.8B BUIDL fund) and JPMorgan expand institutional platforms

Seven-Sector Strategy: Distinct sectors collectively address $16T tokenization opportunity beyond real estate headlines

1. Private Credit: The Dominant Force ($14 Billion Market)

Private credit commands $14 billion of the $24 billion tokenized RWA market. Figure Technologies manages $11.7 billion (73-75% market share). The platform tokenizes Home Equity Lines of Credit with 9.42% yields. This delivers 100+ basis point savings. Maple Finance ($777M), Tradable ($2B+), and Centrifuge ($500M+) expand competition. Tokenization drops minimums from $1-5M to $10K-50K. Settlement compresses to T+0. Illiquid 3-7 year lockups convert to 24/7 trading. If 10% of the $1.5 trillion global market tokenizes by 2030, that represents $150 billion.

WHAT THIS MEANS FOR CIOs

Private Credit: Immediate Allocation Opportunity

• Yield Advantage: 9.42% average yields with 100+ bps cost savings vs traditional bonds

• Platform Maturity: Figure Technologies manages $11.7B (institutional track record established)

• Liquidity: Instant settlement vs T+2-5 traditional settlement, 24/7 trading capability

• Allocation Recommendation: Start with 1-3% of alternatives allocation (Conservative tier)

• Board Presentation: Emphasize BlackRock validation ($2.8B BUIDL fund), institutional custody (Fidelity)

2. Commodities: Gold Leads the Way ($1.2 Billion Market)

Tokenized commodities represent $1.2 billion with 90%+ in gold. Pax Gold (PAXG) and Tether Gold (XAUT) provide institutional-grade tokenization. Daily volume exceeds $6M. Features include 0.01 oz minimums, 24/7 trading, zero storage fees, and DeFi programmability. Beyond gold, platforms tokenize silver, platinum, energy, and agricultural commodities. If 5% of the $12 trillion precious metals market tokenizes, that represents $600 billion.

3. Infrastructure & Energy: $3.1 Billion Market, 41.6% CAGR

Infrastructure and energy asset tokenization is projected to grow from $3.1 billion (2024) to $19.9 billion (2030) at 41.6% compound annual growth rate. This sector includes renewable energy projects (solar farms, wind turbines), traditional infrastructure (toll roads, bridges, airports), and energy assets (power plants, transmission lines).

WHAT THIS MEANS FOR CIOs

Infrastructure: MiCA Compliance = Regulatory Clarity

• Regulatory Milestone: Enel’s MiCA-compliant renewable energy tokens demonstrate regulatory pathway

• Growth Profile: 41.6% CAGR to $90.8B by 2034 (infrastructure + renewable energy combined)

• ESG Alignment: Renewable energy tokenization addresses corporate ESG mandates

• Risk Assessment: Longer investment horizons (5-10 years) vs liquid sectors (private credit:

1-3 years)

• Allocation Timing: Moderate allocators (3-5%) - infrastructure provides diversification from liquid credit

4. Art and Collectibles: Democratizing the $462 Billion Market

Physical collectibles represent $462 billion in addressable value. Platforms like Masterworks, Otis, and Freeport enable fractional ownership of Picasso, Warhol, and Basquiat artworks with $100-$500 minimums versus $100K-$10M+ traditional requirements. The ERC-404 standard revolutionized NFT fractionalization in 2023. Platforms tokenize sports memorabilia ($26B), luxury watches ($75B), sneakers ($79B resale), and trading cards ($5B+). If 10% of the $462B market tokenizes by 2030, that represents $46 billion.

5. Intellectual Property: Royalties, Patents, and Music ($968M Market)

The blockchain-enabled IP market reached $968 million in 2024, projected to hit $3.7 billion by 2030 (25.14% CAGR). Royal.io raised $55 million to tokenize music royalties, enabling Nas to sell fractional streaming royalty ownership directly to fans. Tokenization shifts artist revenue from 10-20% to 80-95% with transparent on-chain accounting. IBM and IPwe created a blockchain patent marketplace where universities tokenize patents and license to pharma companies for 3-5% automatic royalties. If 5% of the $300 billion IP licensing market tokenizes by 2030, that represents $15 billion.

Part 1 Conclusion: Where Institutional Capital Is Flowing

Private credit's $14 billion market and 58% share demonstrate that institutional capital flows to sectors with proven product-market fit. Commodities provide inflation hedges with established infrastructure. Infrastructure delivers exceptional growth (41.6% CAGR) with ESG alignment.

Together, these three sectors represent over $18 billion in current tokenized assets with clear paths to $270+ billion by 2030 based on conservative penetration rates (10% for private credit, 1% for gold, sector growth for infrastructure).

6. Securities: Stocks, Bonds, and Funds Going On-Chain

Securities tokenization represents the largest opportunity as global securities markets exceed $300 trillion. BlackRock BUIDL ($2.8B), Franklin FOBXX ($410M), and JPMorgan Kinexys ($300B daily volume) provide institutional validation. Tokenization enables 24/7 equity trading, fractional Berkshire Hathaway shares, T+0 settlement, and 35-65% cost savings. Siemens issued $64M digital bonds in 2024. Private securities benefit most: private equity minimums drop from $5-10M to $10K, venture capital becomes fractionally accessible, and hedge fund fees compress below 1%. If 10% of global securities tokenize by 2030, that represents $30 trillion.

WHAT THIS MEANS FOR CIOs

Securities: BlackRock Validation Reduces Board Concerns

• Institutional Validation: BlackRock’s $2.8B BUIDL fund, JPMorgan’s $300B daily Kinexys volume

• Operational Benefits: 35-65% cost savings (custody, settlement, servicing automation)

• Market Sizing: $30T addressable market (stocks, bonds, funds) - largest tokenization opportunity

• Board Strategy: Lead with peer validation (BlackRock, Goldman, Franklin) to address fiduciary concerns

• Timeline: 2025-2027 expect accelerated institutional adoption as regulatory clarity improves

7. Carbon Credits: Climate Finance Meets Blockchain

The global carbon market reached $850 billion in 2023, with voluntary markets at $2 billion projected to hit $50+ billion by 2030. Traditional markets suffer from double counting, opaque pricing, and registry fragmentation. Blockchain provides immutable ledgers, transparent marketplaces, and fractional trading (0.1 ton CO2 minimums). Toucan Protocol bridges Verra credits on-chain, KlimaDAO locks supply to drive price appreciation, Flowcarbon raised $70+ million, and Carbonplace (HSBC, BNP Paribas, Standard Chartered) launches institutional infrastructure. Each token represents 1 ton CO2 offset. If 50% tokenizes by 2030, that represents $25 billion.

Conclusion: The Seven-Sector Opportunity

The tokenization revolution spans seven sectors with $16 trillion addressable opportunity.

THE $16 TRILLION OPPORTUNITY | Private Credit: $14B market, 58% RWA share, Figure Technologies dominance | Commodities: $1.2B market, 90% gold, 25% annual growth | Infrastructure: $3.1B market, 41.6% CAGR, $90.8B by 2034 | Art and Collectibles: $462B addressable, fractional ownership revolution | Intellectual Property: $968M market, 25% CAGR, $3.7B by 2030 | Securities: $30T potential, largest opportunity, institutional validation | Carbon Credits: $2B voluntary market, $50B+ by 2030, climate finance driver

Each sector delivers fractional ownership, 24/7 liquidity, transparent on-chain data, cost efficiency, and smart contract automation. Conservative allocators start with 1-5% (60% treasuries, 20% gold, 20% private credit). Moderate allocators target 5-15% across treasuries, private credit, commodities, infrastructure, and art. Aggressive allocators deploy 15-30% spanning all seven sectors.

WHAT THIS MEANS FOR CIOs

Portfolio Allocation: Start Conservative, Scale with Experience

• Conservative Start (1-3%): Focus on private credit (Figure Technologies) + tokenized gold (Pax Gold)

• Proven Performance: 9.42% yields in private credit, 85% YoY growth demonstrates market momentum

• Board Approval Strategy: Present as ”alternatives allocation rebalancing” not ”new crypto exposure”

• Scaling Path: Year 1 (1-3%), Year 2 (3-5%), Year 3 (5-10%) as track record builds

• Risk Management: Diversify across 3-4 platforms minimum, avoid single-sector concentration greater than 40%

Near-term (2025-2026): private credit consolidation, Wall Street tokenized ETFs, renewable infrastructure growth post-MiCA, scaling music royalty platforms. Mid-term (2027-2029): public equity pilots, carbon credit 10x growth, mainstream IP tokenization. Long-term (2030+): multi-trillion dollar tokenized securities markets.

Institutional investors should diversify across sectors, start early, and focus on institutional-grade platforms with regulatory compliance.

GSC PERSPECTIVE

For institutional investors, seven tokenization sectors present distinct strategic opportunities requiring phased allocation approaches balancing maturity, regulatory clarity, and risk-adjusted returns. Private credit ($14B market, 58% share) and commodities ($1.2B) offer operational maturity with proven liquidity. Securities tokenization benefits from BlackRock BUIDL fund ($2.8B) and JPMorgan Kinexys ($300B daily volume) institutional validation, while infrastructure demonstrates 41.6% CAGR with MiCA regulatory clarity in Europe. Art, IP, and carbon credits represent emerging opportunities requiring pilot strategies.

Greenwich Sound Capital recommends phased positioning timeline: Years 1-2 (2025-2026) establish 2-5% pilot allocations in mature sectors including private credit, commodities, and tokenized treasuries. Years 3-4 (2027-2028) scale to 5-10% across seven sectors as regulatory frameworks mature and secondary liquidity develops. Years 5+ (2029+) integrate tokenized assets as permanent 10-15% alternative allocation. This strategic window captures 12-18 month licensing lead time and 2-5 percent cost advantages before mainstream institutional adoption accelerates pricing and reduces opportunity.

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