The introduction of blockchain technology was the game changer. It is revolutionizing the financial markets. What was once unthinkable is becoming a reality, and tokenization has emerged as a crucial element in expanding digital asset markets, transforming them from niche and experimental to widely accepted and mainstream. Driven by client demand and the potential opportunity that tokenization can bring to banks and the global digital economy, financial institutions are increasingly looking to integrate digital assets into their services.
💹 The global trade finance market is a behemoth, and is ripe for tokenization. Most of these trade finance assets across banks can be tokenized and transformed into digital tokens, giving access to a global pool of investors seeking returns. With the current market trends, we expect demand for overall tokenized real-world assets to reach up to USD 30.1 trillion by 2034, with trade finance assets being in the top three tokenized assets, and reaching up to 16% of the total asset tokenization market in the next decade.
🌟 Embracing the Four Benefits of Tokenization:
1. 🌍 Improve market access
2. 🔄 Simplify transaction complexity
3. 💳 Digitalize securitization
4. 📊 Reduce information asymmetry
