Philippines tokenized market seen hitting $60 billion by 2030

Over 14 percent of Filipinos already own cryptocurrencies, which is higher than participation in stocks at 2.4 percent or bonds at less than one percent.

MANILA, Philippines — The country’s tokenized market is expected to reach $60 billion by 2030, equivalent to roughly P3.5 trillion, across government bonds, mutual funds, equities, and other investments, according to a report by financial institutions.

The report by the Philippine Digital Asset Exchange (PDAX), Saison Capital and Onigri Capital showed that the value represents approximately five percent of the total value of deposits and securities over the past five years.

National Treasurer Sharon Almanza said that the partnership between PDAX and GCash to distribute tokenized government bonds widely is a step toward inclusive banking.

“The partnership brought government bonds directly to the fingertips of millions of Filipinos. It represents a bold leap forward in democratizing access to public financial instruments, further promoting financial inclusion,” Almanza said.

It indicated that the increase in tokens can be attributed to the acceleration in regulatory openness, as the Bangko Sentral ng Pilipinas has taken a progressive approach to digital assets and the frameworks introduced by the Securities and Exchange Commission.

“The $60 billion projection is best viewed as a conservative floor, the minimum viable opportunity that is achievable by 2030 in today’s trajectory. The real upside will depend on how quickly the Philippines can scale first-time participation through public-private partnership,” the report read.

Breaking down the estimated amount, the chunk is expected to be from public equities at $26 billion, followed by government-backed bonds at $24 billion, mutual funds or unit investment trusts at $6 billion, and other assets amounting to $4 billion.

The report noted that the Philippines is in a favorable position, as blockchain wallet infrastructure is already in place, and the country is building from the bottom up, with mobile wallets reaching millions of users.

Over 14 percent of Filipinos already own cryptocurrencies, which is higher than participation in stocks at 2.4 percent or bonds at less than one percent. The report noted that by year-end, the estimated number of cryptocurrency users in the country was expected to reach 15 million.