- All “real world” asset classes could be tokenized in the form of NFT in five to ten years, said Founding Partner and COO of the digital asset service platform Matrixport.
- Compared to legacy systems, blockchain infrastructure is the better choice.
- A more streamlined financial system would result from it.
Cynthia Wu, Founding Partner and COO of digital asset service platform Matrixport, believe that in five to ten years, practically all “real world” asset classes could be tokenized in the form of a nonfungible token (NFT).
Wu stated that the ideal scenario for NFTs would involve the widespread depiction of real-world assets to be kept and traded on-chain that eventually, all the major financial asset classes are going to be depicted on this innovative financial infrastructure [as well as] NFTs could be our tool to portray off-chain assets such as real estate deeds, equities, or bonds.
It would boost price discovery and transaction activity if these real-world assets were moved onto the blockchain because they would become “more liquid and marketable,” Wu stated.
But Wu also claimed that even though it’s great that we’ve produced over $2 trillion in digital native assets from Bitcoin (BTC), Ether (ETH), and other tokens on-chain, the only market segment to have produced NFT transaction activity has come from digital collectibles, that hasn’t really aided institutional implementation. Still, he believes that the tide will eventually turn, though.
The entire value of tokenized illiquid assets may reach $16.1 trillion by 2030, according to a report from Boston Consulting Group (BCG) earlier this month. According to BCG, pre-initial public offering (IPO), real estate, private debt, and revenue from small to medium-sized firms will account for a large portion of this tokenization.
Wu added that while financial institutions have expressed interest in the tokenization of real-world assets, some have been a little hesitant to abandon the old systems that have served them well for so long.