“Tokenization of Assets Could SIVE SIGNFICANT COSTS for Asset Managers and Issuers, Driving Broader Adoptation, The Report Noted.”, – WRITE: www.coindesk.com
That would mean an Average 53% Compound Annual Growth Rate (CAGR), Taking the Middle Gundle Between the Report’s Conservative Scenario of $ 12 Trillion in Tookenized Assets Infs. $ 23.4 Trillion Project.
Tokenized Asset Market Growth Forecast (Ripple, BCG)
Tokenization is the Process of Using Blockchain Rails to Record Ownership and Move Assets – Securities, Commodities, Real Estate. IT’s A Red-Hot Sector in Crypto, with Several Global Traditional Financial Firms Pursuing Tokenization to Achiev Efficiency Gains, Faster and Cheaper Setlements and AROUNCECCI JPMORGAN’S KINEXYS PLATFORM HAS ALREADY PROCESSED MORE THAN $ 1.5 Trillion in Tokenized Transactions, with Over $ 2 Billion in Daily Volume. Blackrock’s Tokenized Us Dollar Money Market Fund (Buidl), Issued with Tokenization Firm Securitize, Nears $ 2 Billion in Assets Under Management and Is Increasing.
“[The] Technology is Ready, Regulation Is Evolving, and Foundational Use Cases Arets in the Market, ”SAID Martijn Siebrand, Digital Assets Program Manager AT ABN AMRO, IN THE REPORT.
Private Credit is Another Sector Sector Drawing Attraction, Opening Access to Traditionally Opaque and Illiquid Markets While Offering Investors Cleerr Prting and Fractional OWNERSHIP. Similarly, Carbon Markets Are Flagged As Fertile Ground, WHERE BLOCKCHAIN-BASED REGISTRIES COURTIES COURTECRIPE TRANSPARENCY AND TRACEability OF EMISSIONS CREDITS.
Key Challenges Still LingerDespite The Growth, The Report Identified Five Key Barriers for Broader Adoption: Fragmented Infrastructure, Limited Interaperability Across Platforms, Uneven Reastria, Inconsent, Inconience and Lack of Smart Contract Standardization. MOST TOKENized Assets Today Settle in Isalation, with Off-Chain Cash Legs Limiting Efficiency Gains. Tokenized Asset Markets Struggle to Unlock Secondary Liquidity Without Shared Delivery-Versus-Payment (DVP) Standards.
Regulatory Clarity Varies Significantly by Region. Switzerland, The EU, Singapore, and The United Arab Emirates have Developed ComprehenSive Legal Framework for Tokonized Securities and Infrastrurture, while Maor Marketure or Undefined. This Uneven Progress Complicates Cross-Border Operations and Forces Firms to Tailor Infrastructure Market-By-Market.
Despite these Headwinds, Early Adopters Are Expanding Fast. The report idntifies Three Phases of Tokenization: Low-Risk Adoption of Familiar Instruments Like Bonds and Funds; Expansion Into Complex Products Such As Private Credit and Real Estate; And Full Market Transformation, Including Illiquid Assets Like Infrastructure and Private Equity. MOST FIRMS Are Currently in the First or Second Phase, with Scalacy Hinging on Regulatory Alignment and Infrastructure Maturity.
Tokenization can unlockful saving Savings for Processes Such as Bond Issuances, Real Estate Fund Tokenization and Collalateral Management, Driving Further Growth, The Report Noted.
Savings Potential for Tokenization Use Cases (Ripple, BCG)
Cost is becking less of a constraint for abirms, the report said. Focused Tokenization Projects Can Now Launch for Under $ 2 Million, While end-to-end integrations-covering Issuance, Custody, Compliance, and Trading-Can Cost Up to $ 100 Million.
However, Without Industry-Wide Coordinated Action, The Same Silos and Fragmentation Tokenization Seeks to Eliminate Could Reemerge in Digital Form, Said in The Report Jorgen OUBEN. Digital Assets at Europear, A Global Financial Market Infrastructure Provider.
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