The era of asset tokenization is upon us, and it’s high time traditional finance woke up to this game-changing reality. Tokenization — the process of digitizing assets onto a blockchain — is not just an innovation; it is an imperative. Traditional financial markets are staring disruption in the face, threatened by obsolescence if they don’t embrace this transformative technology.
The disruption is on our doorstep, powered by blockchain technology. Global equity markets, worth over US$100 trillion, are on the brink of a powerful structural shift spurred by tokenization that promises to reshape the inefficient legacy systems that much of the world relies upon.
Case for tokenization: efficiency, automation, disruption
Many view blockchain as a technology surrounded by undue hype and speculation. Critics often question the necessity of blockchain when standard databases serve the purpose. But such views overlook a key fact — blockchain technology and its application in asset tokenization offer an unparalleled opportunity: transitioning traditional financial infrastructure on-chain.
According to data from DeFiLlama, the top five decentralized protocols dealing with real-world assets (RWAs) account for approximately US$688 million in current total value locked within their smart contracts. Comparatively, the top five projects on Ethereum command a combined total value locked of US$32 billion. With global equity markets towering over US$100 trillion, the value of RWAs on-chain has exponential room for growth.
