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Fractionalization of real world assets: Is this the holy grail of blockchain tech?

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The tokenization of real-world assets is going to be a dominant theme for the rest of this decade, but there are still some pain points left to resolve. “We’re so early” is one of the crypto sector’s best-known sayings, and when it comes to tokenizing real-world assets, it’s completely true. Bullish estimates from Boston Consulting Group predicted last year that the crypto sector could be a $16.1-trillion market by the end of the decade — a truly staggering figure. Analysts imagined a world where illiquid assets such as real estate, physical art and even exotic beverages were tokenized — opening up the door to fractional ownership. This could be a game changer, especially considering these are asset classes that have traditionally been inaccessible to broader audiences. The tokenization of global illiquid assets could potentially become a $16 trillion industry by 2030. This is Real World Asset (RWA) tokenization. And this will be the defining factor for the mass adoption of crypto. H...

‘Killer use case’: Citi says trillions in assets could be tokenized by 2030

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The bank predicts the private equity market to become the most “tokenized” asset class because it is more liquid and can be fractionalized. Investment bank Citi is betting on the blockchain-based tokenization of real-world assets to become the next “killer use case” in crypto, with the firm forecasting the market to reach between $4 trillion to $5 trillion by 2030. That would mark an 80-fold increase from the current value of real-world assets locked on blockchains, Citi explained in its “Money, Tokens and Games” March report. “We forecast $4 trillion to $5 trillion of tokenized digital securities and $1 trillion of distributed ledger technology (DLT)-based trade finance volumes by 2030,” the firm's analysts said. Of the up to $5 trillion tokenized, the bank estimates $1.9 trillion will come in the form of debt, $1.5 trillion from real estate, $0.7 trillion from private equity and venture capital and between $0.5-1 trillion from securities. Blockchain-based tokenization total ...