Tokenization of Real-World Assets to Reach $10 Trillion by 2030, Driving a New Era in Finance
December 18, 2023The tokenization of real-world assets is predicted to reach a value of $10 trillion by 2030
Stablecoins and central bank digital currencies are already being tokenized, with the stablecoin market anticipated to grow to nearly $3 trillion in the next five years
The tokenization of traditional investment products like stocks and bonds is gaining significant interest
Major financial institutions such as JPMorgan and countries like Hong Kong, Singapore, Japan, and Thailand have launched initiatives to support tokenization
Analysts estimate that $5 trillion worth of financial assets could be tokenized by 2030
The interest in tokenization is mainly due to the benefits of atomic settlement, reducing intermediaries, automated transactions, and increased efficiency and liquidity
Challenges such as developing market infrastructure, establishing global standards, addressing regulatory issues, and ensuring interoperability need to be overcome
Despite these challenges, the potential benefits for investors and the financial industry make the business case for tokenization compelling.
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