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Tokenization Still a Fraction of Global Assets Despite Bitcoin’s Resurgence
Despite the recent resurgence of Bitcoin and growing interest in tokenized assets, the concept remains a tiny fraction of global assets. According to the latest data, only around 67,530 entities have adopted asset tokenization outside of stablecoins, representing a mere 0.003% of the total value of global assets.
While some experts suggest that tokenization could be even more impactful than the internet, its adoption has been slower than expected. However, things are about to change. The Trump administration is expected to introduce new regulations more favorable to tokenization, and major financial players like BlackRock and Visa are leading the charge by launching tokenized funds and developing platforms for issuing fiat-backed tokens.
The potential of tokenization is vast. It promises to reduce costs and transaction times, making assets more liquid and accessible to a broader range of investors. In fact, it’s estimated that tokenized assets under management will reach $600 billion by 2030, a massive increase from the current $2 billion.
However, experts are also sounding cautionary notes. Nathan Allman, CEO of Ondo Finance, warns that tokenization could lead to the sale of mispriced assets to unsophisticated investors. Meanwhile, analysts like Ervinas Janavicius from Capco argue that significant work remains before tokenization can truly maximize its potential and revolutionize financial markets.
Despite these concerns, it’s clear that tokenization is poised for a significant increase in adoption and impact. As the technology continues to advance and regulatory frameworks become clearer, we may see a radical transformation of financial systems in the long term.
Source: crypto-economy.com
