Banks Join in Tokenization

There have been numerous articles about funds such as Blackstone promoting tokenization but banks are also increasingly active in trading and wealth management.

According to a Citi report, tokenisation of financial and real-world assets could be the use case driving blockchain’s breakthrough, with tokenisation expected to reach up to almost $4 trillion in value by 2030…..

Tokenisation offers possibilities for blockchain technology to solve traditional problems such as lack of transparency, and offers the ability to fractionalise assets and democratise access to the public. Anyone could own a fraction of a high-value asset that they could never touch otherwise. It also unlocks a new way to monetise illiquid assets and improves accessibility. Tokenisation also makes transfer and settlement of assets more efficient….

Ronit Ghose, global head for future of finance at Citi Global Insights, echoed the sentiment: “In the future, digital assets and tokenisation will not be considered innovation but seen as business as usual. Accordingly, the need to invest in these solutions is now, or else banks run the risk of being seen by their clients as not having a complete product offering and hence losing market share.”

The Asian Banker 13 March 2024
Posted in Capital Markets, Tokenization, Wealth Management.