With the worldwide digital asset market projected to hit $16 trillion by 2030,
the race to weave blockchain technology into the fabric of global finance is
rapidly heating up. Turning the immense potential into reality, however, will
require more than just speed. Economies and financial institutions need a clear
roadmap to move forward, anchored in strong legal frameworks and smart risk management.

Experts emphasize that winning in the multi-trillion-dollar digital asset and
tokenized asset market is no simple tech sprint. It’s experiencing a sweeping transformation
that calls for a blend of strategic vision, airtight regulation, agile risk governance,
and unified commitment from the top down.

Booming market

According to forecasts from Boston Consulting Group (BCG), the digital and
tokenized asset market is heading into a decade of explosive growth. From a modest
$300 billion in 2022, the market is expected to reach $16 trillion by 2030. In an
even more optimistic scenario, that figure could soar to as high as $68 trillion.
BCG attributes this extraordinary expansion to three key drivers.

The first is a clearer regulatory framework. As governments worldwide refine
laws and regulations, a more transparent and secure playing field will emerge.

The second is intergenerational wealth transfer. Younger generations, raised
in the digital era, tend to be more open to and interested in alternative investments
such as digital assets.

And the third is market appeal. Asset tokenization opens a new gateway for
investors to access markets. Blockchain technology “democratizes” access to tokenized
and digital assets, attracting a vast pool of investors.

However, the market’s development is not uniform across the globe.

Speaking at the recent “Digital Assets:
Transforming Financial Markets” conference hosted by Var Meta in Hanoi,
Mr. Jeffrey Tchui, Vice President and Head of APAC Ecosystem at the Hedera Foundation,
noted that the level of adoption for asset tokenization technology depends heavily
on each country’s legal framework.

In major financial hubs such as Hong Kong (China), Singapore, and Japan, open
regulatory environments and high-quality talent pools have made it easier to test
and adopt the technology. In contrast, in many developing markets, the technology
remains confined to tightly controlled regulatory sandboxes, largely serving traditional
financial activities.

Against this backdrop, Vietnam is adopting a proactive stance, having officially
laid the initial legal foundations for digital assets. The upcoming pilot of a tokenized
asset exchange at its planned international financial center is expected to be a
breakthrough step, helping Vietnam integrate more deeply into the global fintech
market.

Regulation key

As digital assets gain ground, security and risk management have become critical
concerns. Lessons from Thailand and Malaysia show that a strong legal framework
is the bedrock of trust.

In Thailand, custodial risk is addressed through strict regulations; a response
to the collapse of FTX, once the world’s second-largest crypto exchange and
valued in the tens of billions of dollars. “Exchanges, brokers, and investment funds
must keep 90 per cent of total assets in cold wallets managed by a licensed third-party
custodian,” Mr. Arthit Sriumporn, Founder and CEO of Rakkar Digital, explained.
This separation of control prevents exchanges from misusing customer funds, ensuring
most assets are held securely by an independent, regulated entity.

To maintain daily liquidity, exchanges can keep up to 10 per cent of assets
in hot wallets under their own management, with constant rebalancing between hot
and cold storage to meet withdrawals while maximizing safety.

In Malaysia, regulatory oversight is equally strict. “Anyone operating an asset
tokenization platform must be licensed by the Securities Commission, and comply
with all stringent rules,” said Ms. Selvarany Rasiah, Founder and CEO of KLDX. The
country enforces a Group Technology Risk Management (GTRM) framework across all
licensed entities, ensuring they meet the highest security standards, on par with
traditional financial institutions.

She noted that blockchain does not create new risks but requires tailored management,
especially across multiple chains or in DeFi (decentralized finance). “The risks are
similar to those faced by traditional stock exchanges, from custody to security,”
she explained, emphasizing the need for robust internal controls such as multi-factor
authentication, alongside using reputable cloud service providers to guard against
cyberattacks.

Business before tech

With their vast potential, digital assets are drawing increasing interest from
banks and financial institutions. But for those looking to enter the space, experts
share one core piece of advice: start with the business case, not the technology.

“I’ve worked with many financial institutions and banks on digital transformation
projects, such as core banking solutions,” Mr. Tchui said. “The focus is often on
risk management and risk profiles. Innovation teams usually work with business teams
to explore new technologies. But I urge banks and financial institutions not to
take a technology-first approach to blockchain, because it won’t solve the underlying
business problem.”

He pointed to digital asset custody as an example. Starting from the tech side
can often bog down complex discussions about wallets and private keys, confusing
business teams and leaving IT unable to offer support since it falls outside standard
operational processes.

Instead, he recommended creating a sandbox targeting a specific market with
a clear deployment goal, avoiding far-fetched use cases with no clear destination,
while actively engaging with the community, platforms, and custodians to learn from
their experience and define a clear role in the risk management journey.

According to Ms. Rasiah, successful digital asset adoption rests on three pillars.

The first is regulatory
clarity. “This is the most critical factor,” she continued. “Without it, banks,
bound by strict risk management, will struggle to proceed. Ecosystem partners and
investors will hesitate, and scaling will be difficult.” She added that regulators
should apply traditional financial rules to tokenized assets.

The second is market
and investor education, to build understanding and consensus. A major challenge,
Ms. Rasiah believes, is ignorance leading to fear of unknown risks. Education must
start at the top: Boards of Directors need to know why this matters and the competitive risks of moving too slowly.
That knowledge should then cascade down to managers and staff. The entire partner
ecosystem, including custodians, law firms, and auditors, must also be educated
so that all parts of the chain operate smoothly in a new environment.

And the third is identifying
a concrete use case and market need. There must be a clear business problem to solve:
Why tokenize an asset? What customer issue does it address?

Vietnam is now entering a pivotal stage in its digital asset development strategy.
According to Mr. Frank Le, Head of Growth at Var Meta, pilots such as stablecoin
payments in central Da Nang city exhibited the clear real-world potential when banks,
technology, and government work hand-in-hand. “When Vietnam’s Law on Digital Technology
Industry takes effect and the government sets out a clear legal framework, it will
mark a crucial moment in the country’s digital transformation,” he said.