Friday, August 13, 2021

Is tokenisation the next sector of crypto to explode?

2021 has given us the explosion of DeFi. Decentralised exchanges have seen their volumes grow to sizes that compare to their centralised counterparts.

DeFi growth through 2021:

NFT’s have had a similar surge this year, with use cases varying from trading meme’s to verifying tickets for real world events.

Both of these sectors have seen absolutely explosive gains in terms of market cap, and this begs the question: What is going to be the next boom in crypto?

By 2030, most securities will be tokenized. In an interview with Raiffeisen Bank, Raiffeisen explains that the way we currently trade securities will be gone within 10 years. Even though Raiffeisen reports that the majority of investors are not currently asking for exposure to security tokens, investors are beginning to demand a trading experience for stocks that is similar to cryptocurrencies. They want transparency, liquidity, and instant settlement. Transitioning to trading all assets on distributed ledger technology is inevitable

One of the main trends in the security token market is tokenized real estate, which became the highest growth segment in 2020. It more than doubled its number of offerings compared to 2019. This growth has not stopped in 2021, and seems that we are on the verge of Asset tokenization becoming mainstream.

Another large trend which is only now starting to be explored is the tokenising of SME companies. Blockchain companies are working with Business incubators to tokenise shares in SME companies.

Countries like Ukraine are already passing laws to get ahead of this tokenization boom It seems to me that the tokenization of real world assets, allowing to tap into the locked liquidity of assets like Real estate and company shares, is going to be the next boom in the cryptosphere. There are companies out there who are currently making waves like these 4 buildings that were tokenized with a 33% revenue share to those who held tokens on the platform Let me know your thoughts on tokenising assets below, and if there are any tokenisation projects you have your eyes on.


No comments:

Post a Comment