BCG projects that the tokenization of financial assets on the blockchain will grow into a USD 16 trillion market by 2030 and will represent 10% of all financial assets. Against this backdrop, Fireblocks has seen rapid growth in demand from customers, with a 350% increase in tokenization projects between 2022 and 2023, and 75% of tier-1 financial institutions exploring tokenization via its platform.
Since its first bank-issued stablecoin in March 2022, Fireblocks has delivered more than 10 stablecoin projects and is in active conversations with more than 25 banks who are exploring the creation of bank-issued stablecoins or tokenized deposits. By 2026, the company expects the value of tokenized money on the blockchain to reach USD 450 billion.
In May 2023, Fireblocks enabled the Tel Aviv Stock Exchange (TASE) and the Israeli Ministry of Finance to tokenize and settle a government bond following a live auction with 5 domestic and 7 global banks. As the sole issuers of Israeli government bonds, both parties now have a credible path to tokenize Israel's government debt market, which is worth USD 15 billion annually. Fireblocks expects the value of tokenized bonds on the blockchain to reach USD 400 billion within the next three years, targeted to hit USD 1 trillion by 2028.
BlockFold aids significant financial institutions in diverse tokenization projects, customising solutions for money, assets, and decentralised markets. Key clients include prestigious entities like Bank of International Settlements Innovation Hub, Swiss National Bank, Banque de France, Singapore's Ministry of Finance, Tel Aviv Stock Exchange, and National Australia Bank, several of which are Fireblocks' clients too. BlockFold's expertise enriches Fireblocks' capacity to provide personalised solutions and integrate tokenization into large financial institutions' existing systems. This partnership seeks to enhance the value in both tokenization and decentralised finance.
The BlockFold team is integrating into Fireblocks, with the engineering team joining the Web3 engineering staff and the business consulting team joining the Financial Markets group.
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