Crypto Wiki
June 19, 2024

Tokenized assets will overtake the cryptocurrency market

In recent years, the growth of cryptocurrencies such as Ethereum and Bitcoin has dominated news stories but let’s not forget about the recent decisions to tokenize assets. Still, the tokenization of real-world assets is a trend that might be much more revolutionary and is developing covertly, and questions like “Why cryptocurrency market is down today” can arise. According to Roland Berger’s estimate, tokenized assets are expected to have a market value of over $10 trillion by 2030, which will significantly surpass the present market capitalization of cryptocurrencies. In this article, MPost will look at this topic more precisely.

Crypto Asset VS Cryptocurrency?

The technique of expressing ownership rights to physical assets into digital tokens on a blockchain is known as asset tokenization. This covers both intangible assets like investment funds, debt instruments, data, and intellectual property, as well as actual assets like real estate, art, commodities, and infrastructure projects. These assets become more divisible, liquid, and available to a larger pool of investors through tokenization.

The $10 Trillion Projection

Roland Berger has estimated that by 2030, the tokenized asset market might increase from its current size of roughly $300 billion to at least $10.9 trillion, a growth of over 40 times. Due to their sheer size and an excellent fit for tokenization use cases, real estate, debt securities, and investment funds are anticipated to rule this sector.

Tokenization offers potential benefits to almost all industries; however, financial services, industrials, energy/utilities, the public sector, and real estate are the best positioned. The value proposition is illustrated by early instances, including a large hotel chain tokenizing ownership of newly constructed buildings, a PE company tokenizing a healthcare fund, and manufacturers tracking product lifecycles using tokens.

Advancements in Regulation Are Required

The lack of clarity in local rules regarding tokenized assets has been a significant obstacle. However, in an effort to reduce the cost of compliance, legislators are starting to offer more precise definitions and standards. Further advancements in-laws will hasten institutional adoption even further.

Real-world asset tokenization is a paradigm shift that has the potential to create billions of dollars in value by converting antiquated asset classes into digital currencies that are liquid and marketable. Although this change is still in its early stages, it will have a significant impact on many industries; businesses must adapt and create tokenization plans if they don’t want to fall behind.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

He's a seasoned writer known for crafting compelling narratives that engage audiences and drive brand growth. With a keen eye for detail and a passion for storytelling, Kenth excels at turning complex ideas into eye-catching marketing messages.

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Kenth Bennett
Kenth Bennett

He's a seasoned writer known for crafting compelling narratives that engage audiences and drive brand growth. With a keen eye for detail and a passion for storytelling, Kenth excels at turning complex ideas into eye-catching marketing messages.

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