• U.S. investment bank Citi released a report predicting that trillions of real-world assets could be tokenized by 2030.
• The largest category ripe for tokenization is debt, while other categories include real estate, private equity and venture capital.
• According to Citi’s report, $4 to $5 trillion worth of assets could be on blockchain by 2023.
Citi Predicts Trillions in Assets Could Be Tokenized by 2030
U.S. investment bank Citi released a report predicting that trillions of real-world assets could be tokenized by 2030. The largest category ripe for tokenization is debt, while other categories include real estate, private equity and venture capital. Blockchain technology is seen as having the potential to revolutionize almost every aspect of the modern world – and asset tokenization appears to trump all others in terms of untapped potential.
Forecasted Asset Tokenization Value
Citi estimated that between $4 to $5 trillion worth of assets could be on blockchain by 2023 – an 80x increase from the current value of tokenized real-world assets. The investment bank believes successful adoption will come with over a billion users who do not even realize they are using the technology. Of this estimated value, around $1.9 trillion would come from debt, $1.5 trillion from real estate, $0.7 trillion from private equity and venture capital, and between $0.5-1 trillion from securities respectively..
Growing Pains
Citi noted there are still players skeptical of blockchain technology due to its „growing pains“ such as transaction speed, throughput and other areas needing improvements before worldwide adoption can happen at scale .
The Potential Impact
If successful widespread adoption happens within the next decade, it could lead to a substantial increase in trading activity across multiple asset classes which would present opportunities for both traditional market participants as well as new entrants into various markets across different sectors . This would also have a larger impact on global markets including further digitizing processes such as KYC/AML checks , settlement times , increased liquidity , etc .
Conclusion
Tokenizing real-world assets has the potential to revolutionize almost every aspect of our modern lives if successful adoption occurs within the coming years.. With Citi’s prediction that trillions in value will be put on chain by 2030 – we can only hope this number becomes reality sooner rather than later!
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