From Nasdaq:

Digital technologies have revolutionized the global market, but outdated financial systems are hindering progress. Tokenization is set to transform the buying, selling, and trading of assets, offering efficiency and access. Blockchain ledgers promise a more streamlined financial ecosystem, with recent advancements showcasing the potential for improved security and speed in transactions. Institutions and investors are embracing these changes, paving the way for a more open and efficient market.

Major advancements in asset tokenization were seen in 2023, with Goldman Sachs settling a €100 million digital bond on a private blockchain in just 60 seconds. The United Nations, Bank of International Settlements, and the Hong Kong Monetary Authority successfully created prototypes for green bonds and completed the sale of the world’s first tokenized green bond worth over $100 million USD. BlackRock and JP Morgan collaborated on a tokenized collateral network, demonstrating the potential to reduce risk and improve transaction security in financial markets.

According to a report by Boston Consulting Group, the global value of tokenized illiquid assets is projected to reach $16 trillion by 2030. This shift towards a tokenized economy will unlock liquidity, invite new participants into the market, and create a more secure financial landscape. Asset tokenization not only saves time and capital but also improves transaction security, making it a revolutionary development for the financial industry.

By eliminating intermediaries, streamlining compliance and regulation, and improving clearing and settlement times, blockchain technology can revolutionize the financial industry. Fractionalization of assets allows for greater accessibility to high-value assets, reducing cost barriers for investors. This technology opens up new possibilities for investing in traditionally expensive assets, like real estate or fine art, providing a more inclusive market for all participants.

The future of finance is on the brink of a technological revolution, with ETFs paving the way for the tokenization of every financial asset. Industry leaders like Blackrock’s CEO Larry Fink recognize the transformative potential of this shift, highlighting the importance of updating technology to meet the demands of a rapidly evolving market. The collaboration between new technologies and financial institutions is reshaping financial infrastructure, setting the stage for a more efficient and accessible financial landscape.



Read more at Nasdaq: New Infrastructure is Required to Realize Asset Tokenization Markets