Tokenization market in Europe. Cases and Predicted Growth

Although it's not very visible for the unaided sight yet, the industry of tokenization is currently at the stage of exponential growth: it can be witnessed thanks to overall growing market's metrics, a variety of influential organizations creating their own tokenization solutions, and the 9-digit valuations that tokenization startups get more and more often. Currently, the most prosperous ground for conducting an STO is in Europe: the largest amount of various cases, as well as the progress authorities are trying to make in the legislative field, makes the EU a promising jurisdiction to conduct security token offerings. Taking this knowledge into account, it makes sense to analyze the STO market in Europe, look at the bright cases, and summarize the results.

Related: STO market history: from origin to mass adoption

European STO market size outlook

The European security token market is currently only reaching its coming of age; still, like a valid teenager, it's evolving quite fast. Just in the course of 3 years, starting with the first reported security tokens in Europe in 2017, the number of such assets grew a hundred times by 2020. According to PlutoNeo and Tangany's research, the market will continue to rise over the following five years, reaching a total market volume of more than €918 billion in Europe alone by 2026, including fiat-backed stablecoins. Regarding the future growth of security tokens, it is estimated that the growth rate will be roughly 81% each year from 2021 to 2026.