Tokenization of Real-World Assets: A $16 Trillion Industry with Global Impact
Summary:
The tokenization of real-world assets is projected to become a $16 trillion industry, offering solutions to global challenges. Experts discuss the potential applications and benefits of asset tokenization, including immediate payouts for farmers in developing countries and access to financial products for wider populations. Central bank digital currencies (CBDCs) and regulatory advancements are expected to drive further adoption of tokenization. Within a decade, it is anticipated that most people will regularly engage with tokens, revolutionizing the financial landscape.
The Boston Consulting Group predicts that the tokenization of real-world assets could become a $16 trillion industry in the future. However, its impact goes beyond just financial numbers, as it can offer new solutions for people in developing countries facing real-world challenges. At the Swiss Web3 Fest, industry experts discussed how tokenization can be applied to real-world assets and the unprecedented possibilities it brings. Christoph Mussenbrock from Etherisc, a decentralized insurance protocol, highlighted how tokenization solutions can benefit farmers in Kenya by providing immediate payouts, preventing the collapse of their businesses. The demand for on-chain solutions from traditional insurance companies is also increasing, according to Mussenbrock. Stephan Rind from BrickMark Group emphasized that asset tokenization can bridge the gap in wealth distribution by granting access to financial products that are currently unavailable for most individuals. Carlos Mazzi from Finka shared his experience of tokenizing a cattle ranch in Bolivia, which involved significant financial engineering and legal frameworks. While the market adoption of tokenization has been slower than expected, Rind believes that the introduction of central bank digital currencies (CBDCs) and regulatory developments will boost its growth. Jose Fernandez from Tokengate expressed his belief that, within a decade, the majority of people will interact with tokens on a daily basis, even if they are unaware of it.
Published At
9/16/2023 8:02:01 PM
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