Tokenization of Assets Could Boost Financial Inclusion, But Adoption Challenges Remain

Tokenization of real-world assets could become a $16 trillion industry and help people in developing countries.
On-chain insurance provides faster payouts to farmers in Kenya compared to traditional insurance.
Asset tokenization can increase financial inclusion by allowing more people to participate.
Tokenizing a cattle ranch in Bolivia delivered financial engineering challenges but adoption issues remain.
Central bank digital currencies and regulation will likely increase adoption of asset tokenization.

cointelegraph.com

Relevant topic timeline:

8/24/2023

The Tokenization Revolution

Tokenization of real-world assets on the blockchain is rapidly gaining momentum, offering benefits such as transaction speed, liquidity, cost-savings, and round-the-clock access, with experts predicting it to become a $16 trillion industry by 2030. Over 70% of financial leaders expect to use tokenization in their businesses, with potential impacts on asset trading, real estate transactions, derivatives, and carbon markets. Tokenization unlocks liquidity, enhances security and data protection, reduces transaction costs, and enables programmability and automation, making it a key driver of digital asset adoption and a fundamental shift in business operations.

8/25/2023

Moody's sees tokenization opportunity in private capital, alternatives - Ledger Insights - blockchain for enterprise

The demand for illiquid assets is increasing as investors seek higher returns, with tokenization playing a role in enabling this shift, according to experts at a recent event, while surveys indicate that younger generations have a desire for more investment choices. Tokenization is seen as a way to democratize access to investment opportunities by lowering costs and allowing for fractional ownership, which can expand the investor base and generate greater liquidity. Additionally, Generation Z is driving the demand for tokenization and expects more personalized investment options.

8/29/2023

Tokenized U.S. Treasuries Arrive to XDC Network as Digital Bond Market Grows

Tradeteq, a U.K.-based marketplace for private debt and real-world assets, has launched tokenized U.S. Treasury bonds on the XDC Network, with experts predicting that tokenization of real-world assets could become a $5 trillion market.

8/31/2023

The Trillion Dollar Crypto Opportunity: Real World Asset Tokenization

Web3 technologies, such as DeFi and NFTs, are paving the way for the tokenization of real-world assets, which could unlock a new Golden Age in blockchain and traditional finance.

9/7/2023

Tokenization Advocacy Group Wants to Bring the 'Next Trillion' of Assets to Blockchain

The Tokenized Asset Coalition, consisting of industry leaders such as Coinbase and Circle, aims to promote the tokenization of traditional financial assets on a blockchain to bring the "next trillion dollars of assets" on-chain through education, advocacy, and fostering adoption of public blockchains and decentralized finance.

9/7/2023

South Korea's Largest Financial Group Partners with Polygon to Boost Tokenization

Mirae Asset Securities, South Korea's largest financial group, is partnering with Ethereum scaling platform Polygon Labs to promote tokenization in finance and drive the adoption of Web3 technologies. Through the collaboration, Mirae aims to establish itself as a global leader in tokenized securities, bringing real-world assets onto the blockchain. Tokenization projects have already been initiated by other financial giants, and the industry is projected to grow significantly, reaching $16.1 trillion by 2030. The partnership is expected to accelerate the adoption of Web3 technologies in the financial sector and enhance interoperability with foreign financial systems.