📐Size of the Opportunity

Automating and tokenizing asset management strategies via "smartcoins" is not only the largest challenge in the space but also the largest opportunity.

Asset Management and Yield Bearing Tokens

The global asset management market is on a steep upward trajectory, with its value set to skyrocket from $313.55 billion in 2021 to an estimated $8.3 trillion by 2032. This represents:

  • Compound annual growth rate (CAGR) of 28.35% from 2023 to 2030

  • Assets under Management (AUM) are expected to nearly double to $145.4 trillion by 2025 from $84.9 trillion in 2016.

Such explosive growth is driven by demographic shifts and macroeconomic trends, alongside the digitization of financial markets. Simultaneously, the yield-bearing token market has expanded rapidly, with segments like U.S. Treasuries growing from $100 million to $850 million in just a year. The broader sectors, including Liquid-Staked Tokens (LSTs) and stablecoins, now boast over $160 billion in circulation. Projections suggest that tokenized Real World Assets (RWAs) could reach up to $10 trillion by 2030, highlighting a surging interest in tokenized financial products.

As traditional financial markets modernize, asset management will inevitably be facilitated on-chain.

Creating The Building Blocks of Smart Money

Umoja stands at the forefront of revolutionizing asset management and yield-bearing token markets, facilitating immediate access to a diverse range of on-chain, tokenized financial products tailored for both traditional finance (TradFi) and decentralized finance (DeFi). Despite the current market size of yield-bearing tokens exceeding $160 billion, these early instruments face challenges like impermanent loss. Umoja's Smartcoins tokens are set to eclipse these by offering both yield generation and market volatility protection. As a universally accessible and censorship-resistant platform, Umoja aims to produce a virtually limitless array of high-performance financial instruments.

Even if Umoja were to capture a 10 basis points share of the global asset management market by 2030 ($5.4 trillion), the protocol would facilitate at least $5.4 billion in notional transaction volume. This positions Umoja not just as a participant, but as a key innovator in the financial landscape's evolution.

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