Overview
- The tokenization of real-world assets could become a $16 trillion industry in the coming years.
- Tokenization can help people in developing countries find new ways to deal with real-world problems.
- Tokenization solutions for agricultural production can provide immediate payouts to farmers, preventing financial hardships.
- Traditional insurance companies are showing increasing interest in on-chain solutions.
- Asset tokenization can provide access to financial products that are currently unavailable to most people.
- The democratization of capital can be achieved through the tokenization of various assets.
- Tokenization can involve the conversion of value creation from grass to cash, as seen with the tokenization of a cattle ranch in Bolivia.
- The adoption of asset tokenization is expected to increase with the introduction of central bank digital currencies (CBDCs).
- In ten years’ time, most people will interact with tokens on a daily basis.
The Boston Consulting Group estimates the tokenization of real-world assets could become a $16 trillion industry in the coming years. Its impact, however, goes well beyond financial figures, and can help people in developing countries to find new ways to deal with real-world problems.
During a panel, industry experts provided insights into how tokenization can be applied to real-world assets, and how it is enabling solutions never seen before. Tokenization solutions for agricultural production can provide immediate payouts to farmers, preventing financial hardships.
Traditional insurance companies are showing increasing interest in on-chain solutions. Asset tokenization can provide access to financial products that are currently unavailable to most people, thus helping to close a gap in wealth distribution.
The democratization of capital can be achieved through the tokenization of various assets, from real estate to animals. This allows a greater number of participants to access financial instruments. Tokenization can involve the conversion of value creation from grass to cash, as seen with the tokenization of a cattle ranch in Bolivia.
The adoption issue will be overtaken by central bank digital currencies (CBDCs), believes one expert. “It will create billions of people in the world which have a wallet,” he noted, adding that regulation will also unlock more capital into asset tokenization.
In ten years’ time, most people will be interacting with tokens on a daily basis, whether they know it or not.
