Written by Ross Shemeliak, COO at Stobox
The asset tokenization industry is currently experiencing strong growth. More tokenization-related organizations are emerging, and more and more projects are raising millions of dollars during STOs. Just a quick fact: the global asset tokenization market size was USD 18.1 billion in Q4 2020, while the total digital asset market cap was around USD 350 billion.
At the moment, one of the most suitable regions for holding a security token offering is Europe. Local authorities are seeking to build a favorable policy regarding the STO regulation. Many popular tokenization-related projects also come from Europe. Stobox, which provides consultation services in the field of asset tokenization, analyzes the STO market in Europe, its regulation, and prospects in this article.
Current tokenization market in Europe
Since its emergence, the market of tokenized assets has shown significant exponential growth according to security token market reports. Given the innovativeness of the market, experts believe that the trend of such growth will continue. For instance, according to PlutoNeo and Tangany’s research, Europe is set to see an STO boom in the next five years, with a total market volume of more than €918 billion by 2026. Regarding the future growth of security tokens, its estimated growth rate will be roughly 81% each year from 2021 to 2026. Compared to 2020, the security tokens market cap in 2021 increased by 500% and trading volume by 1000%. Between April 2021 and April 2022, the security tokens market cap increased by 2650% and trading volume by 386%, according to Stobox analytics. In May 2022, the total market cap of traded security tokens surpassed $19 billion, a 20x growth in a year.
This trend is explained by the growing interest in tokenized assets, which offer high liquidity and a way to save and increase funds for investors of any scale.
Regulation of STOs in Europe
At the moment, there is no uniform…
