Driven by Tokenization, Cryptocurrency Market Will Be Worth “$100 Trillion” Within 5 Years (T.D. Cowen)

A $100 trillion revolution? Tokenization traditional financial assets, or RWA (Real World Assets) is definitely one of the the most promising sectors of the cryptosphere. According to the financial group TD Cowen the total value of tokenized assets can reach amounts that are currently unimaginable, in particular thanks to growing participation of traditional financial players . Indeed, more and more of them are interested in this topic and are investing huge sums in the Bitcoin sector.

Key points of this article:

• Tokenization of traditional financial assets has been identified as a revolutionary sector of the cryptosphere, with an estimated potential of $100 trillion for the crypto market by 2030.
• Prominent financial institutions such as JPMorgan and BlackRock are showing a growing interest in this phenomenon, promising a monumental impact on the global economy.

RWA tokenization will be a strong trend in the global economy in the coming years. RWA tokenization involves the digitization of traditional assets (stocks, bonds, real estate, goods, etc.) on blockchains to take advantage of all advantages of this technology, such as speed transactions, very low costs and round-the-clock availability .

In a recent media release, the brokerage and investment company TD Cowen estimated that the value of these tokenized assets can reach 100 trillion dollars to 2030 year. We will remind you that the cryptocurrency market as a whole has currently reached its peak in approx 4.3 trillion dollars when bitcoin hit its latest high of $126,000 October 6.

Traditional banks and financial institutions will make a tidal wave to blockchains TD Cowen analysts cited discussions with executives JPMorgan , Bank of America , Euroclear and tradeweb, which confirmed their interest in the tokenization of some of its financial products.

And you can also mention the bank BNY Mellon and an asset management company BlackRock which are working on the tokenization of various monetary funds .

“While the road ahead remains thorny, progress in policy and regulation has far exceeded our expectations even two years ago. (…) We believe that net capital raising could reach $100 trillion or more in five years, suggesting that this trend is too significant to ignore.”

An excerpt from a note by T.D. Cowan

A TD Cowen report concludes that the tokenization of traditional financial assets is a powerful trend in the world economy. Add to that the growth of stablecoins (especially dollars and euros) , decentralized finance (DeFi) and its rise in popularity bitcoin as a reserve asset and we will see that the future may indeed be bright for our beloved ecosystem! Despite the small roller coaster associated with the inherent volatility in this very young financial market.

Source: journalducoin.com