“Tokenized assets will grow by a factor of 80 in private markets and reach up to almost $4 trillion in value by 2030” according to an article in Global Finance (February 2024) authored by Anthony Noto and Rob Daly.
“For years, tokenization—creating a digital representation of a tangible asset like real estate—was just a finance-sector buzzword. But lately, more companies are making it a reality by weaving it into their corporate finance strategies (i.e., smart contracts, stablecoins and tokenized US Treasury bills)….
Like other real-world assets [RWAs], the grain goes from being a “real-world asset” to an investment instrument. Once ownership is registered on the blockchain, it becomes tradable, and can be divided into fractions, or securely held….
Like other real-world assets [RWAs], the grain goes from being a “real-world asset” to an investment instrument. Once ownership is registered on the blockchain, it becomes tradable, and can be divided into fractions, or securely held….
Also in December, DWS Group (formerly Deutsche Asset Management) confirmed partnering with blockchain firm Galaxy Digital to launch a euro-denominated stablecoin that will “accelerate mass market adoption of digital assets and tokenization.”…
Scenarios like these are going to inspire more C-suite executives to embrace tokenization in 2024, if they haven’t already, says Caitlin Long, founder and CEO of Custodia Bank. “Every bank CEO knows this technology is coming, and if they’re not planning for it now, they’re already behind,” she adds. “Watch what they do, not what they say.”…
APAC projects” enjoy an “innovative ecosystem, supportive regulatory frameworks, and a vibrant community that actively fosters blockchain and tokenization initiatives,” he says. “The US is falling behind in the race to grab Web3 global market share. I’m hoping this will change.”…
Meanwhile, Turner notes, countries like Singapore are “more proactive and supportive of regulatory frameworks for tokenization in a bid to attract startups and companies to explore the technology and become a global hub for the industry.”…
In November, the Monetary Authority of Singapore launched several tokenization pilots. The campaign attracted marquee US firms, including Citi, T. Rowe Price Associates, Fidelity International, BNY Mellon, Franklin Templeton, Apollo and, yes, even JPMorgan Chase.
The EU is also warming up to tokenization, Johnson says, citing regulators “coming up with a new rule book.” In May, the EU adopted its Markets in Crypto-Assets Act (MiCAR), establishing an overall framework for markets in crypto-assets across the region….”
CFOs need to begin realizing that their companies will sooner or later use digital assets as an embedded part of their operations,” Botaitis says. Their teams “will need to anticipate and be ready to account for, and report on, any digital asset position.”
Global Finance – Feb. 2024