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Tokenisation of Real-World Assets: Benefits and Challenges
Authors: Kelroy James, Inês Bragança Gaspar
Presently, a great segment of global wealth is locked in illiquid assets. However, the emergence of asset tokenisation could fundamentally change the way investors unlock access to illiquid assets, potentially allowing millions of people around the world to invest in assets previously unavailable to them. A recent report by Boston Consulting Group conservatively estimates that the total size of tokenised illiquid assets could reach $16 trillion by 2030, with a potential best-case scenario of asset tokenisation reaching up to $68 trillion.
Tokenisation Overview
Asset tokenisation is the process of converting physical or digital assets into digital tokens on a distributed ledger or blockchain. While cryptocurrencies are the most popular tokenized digital assets, the space is expanding to include tokens for real estate, cars, and traditional financial assets like bonds, funds, or corporate stocks. JP Morgan, for example, recently announced its ambitions to tokenize trillions of dollars of assets to develop new mechanisms in financial services such as trading, borrowing, and lending.
