PANews reported on December 27 that according to Bloomberg, tokenization has become a hot topic on Wall Street and in the crypto-finance sector in 2024. Its core is to digitize and chain real-world assets. Although only about 0.003% of assets in the world are tokenized, institutional interest is growing rapidly, especially after the Trump administration is expected to relax crypto regulation and BlackRock launched a tokenized money market fund. Supporters say it could even be bigger than the Internet.
Giants such as Visa, Tether and Mastercard have accelerated their deployment of tokenization, and JPMorgan's Kinexys platform has a daily transaction volume of US$2 billion. Boston Consulting Group predicts that by 2030, the asset management scale of tokenized funds will increase from the current US$2 billion to US$600 billion. Tokenization is believed to improve asset liquidity, reduce transaction costs, and speed up transactions.
However, tokenization still faces risks such as regulation, hacker attacks and improper pricing. Some experts warn investors to be wary of tokenizing low-quality assets. Despite the challenges, tokenization is seen as a potential revolution in the modern financial system, which may reshape the market operation model.
