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What happened?
A recent report from Ripple and Boston Consulting Group predicts that the market for tokenized real-world assets (RWAs) will skyrocket to $18.9 trillion by 2033. The World Economic Forum estimates that by 2027, tokenization could represent 10% of the global GDP. Larry Fink, CEO of BlackRock, emphasized the potential, stating that every asset can be tokenized.
Who does this affect?
The tokenization trend affects a wide range of stakeholders, including financial institutions, investors, and everyday consumers looking to access new markets. Companies across industries, such as real estate, commodities, and fine art, stand to benefit from increased liquidity and efficiency. Additionally, as regulatory frameworks evolve, tokenization could influence how businesses and individuals interact with financial markets globally.
Why does this matter?
The potential $18.9 trillion market size indicates a significant transformation in how value is exchanged and stored globally, impacting traditional finance sectors. Increased adoption of tokenized assets could lead to greater market liquidity, reduced transaction costs, and faster settlement times, reshaping investment strategies. As key players like BlackRock embrace tokenization, it signals a shift in mainstream financial paradigms, potentially driving widespread changes in asset management and trading.
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