Path 12811

TOKENIZATION IS THE FUTURE

What is tokenization?
And why is it ‘hot’?

The financial landscape is on the brink of a far-reaching transformation, and it’s driven by a concept known as tokenization. 

What exactly is tokenization? 
Imagine taking physical assets like real estate, stocks, art and even renewable energy sources and converting them into digital tokens that can be seamlessly traded on the internet. Tokenization can be applied to regulated financial instruments such as equities and bonds, tangible assets such as real estate, precious metals, copyrights to works of authorship intellectual property.

From off-chain to on-chain 
This process promises to unlock liquidity and democratize traditionally illiquid markets and it enables fractional ownership, opening investment opportunities to a wider audience. 

Why does it matter? 
Currently, more than half of the world’s assets are hard to buy and sell, leading to issues like lack of price transparency and limited accessibility. Tokenization could potentially have wide-reaching impacts — as, theoretically, any asset such as gold, real estate & commodities could be tokenized on the distributed ledger.

Blockchain’s transparency and security ensure trust in ownership records. Its potential to convert illiquid assets to liquid assets and disrupt traditional markets has attracted significant attention and innovation. In essence, tokenization is reshaping how assets are bought, sold, and traded, ushering in a new era of asset management and investment possibilities. 

“Will asset tokenization happen overnight?” 
Most likely not — however, progress is accelerating.

The future is here. Are you ready? 
The choice is yours.
DComm - Gartner - Tokezation
Some examples of tokenization
DComm - Examples of Tokenization - Cobalt
Cobalt
DComm - Examples of Tokenization - Renewable Energy Data
Renewable energy data
DComm - Examples of Tokenization - Carbon Credits
Carbon Credits and Emission Reduction
DComm - Examples of Tokenization - Energy Grids
Energy grids
DComm - Examples of Tokenization - Commodities
Commodities
DComm - Examples of Tokenization - Graphite
Graphite
DComm - Examples of Tokenization - Lithium
Lithium
DComm - Examples of Tokenization - Gold precious metals 2
Gold and precious metals
DComm - Examples of Tokenization - Agriculture 2
Agriculture
DComm - Examples of Tokenization - Real Estate
Real Estate
DComm - Examples of Tokenization - Cobalt
Cobalt
DComm - Examples of Tokenization - Renewable Energy Data
Renewable energy data
DComm - Examples of Tokenization - Carbon Credits
Carbon Credits and Emission Reduction
DComm - Examples of Tokenization - Energy Grids
Energy grids
DComm - Examples of Tokenization - Commodities
Commodities
DComm - Examples of Tokenization - Graphite
Graphite
DComm - Examples of Tokenization - Lithium
Lithium
DComm - Examples of Tokenization - Gold precious metals 2
Gold and precious metals
DComm - Examples of Tokenization - Agriculture 2
Agriculture
DComm - Examples of Tokenization - Real Estate
Real Estate

TOKENIZATION IS THE FUTURE

Seizing the $16 trillion potential

Almost anything of value can be tokenized and tokenization of financial and real-world assets could be the ‘killer use-case’ Blockchain needs to drive a breakthrough. This promises 24/7 trading and fractional ownership. By 2030, we’re looking at a colossal $16 trillion game-changing opportunity. Recent reports, including HSBC, JP Morgan, CITI and Boston Consulting Group, have illuminated the immense potential of this digital revolution. 

SOURCE: BOSTON CONSULTING GROUP (BCG)

Early adopters stand to gain, 
over the next five years.

Running projects

DComm customers

2030E

li-ion battery value chain

$400
billion

2030E

Renewable energy

$2,000
billion

Estimates by 2023

Global Markets

SOURCE: CITYGROUP 2023

2030E

Private equity / VC

$7,000
billion

2030 Estimate  |  $700 billion tokenized

2030E

Trade finance

$12,000
billion

2030 Estimate  |  $1,000 billion tokenized

2030E

Real estate funds

$20,000
billion

2030 Estimate  |  $1,500 billion tokenized

2030E

Securities financing & collateral

$42,000
billion

2030 Estimate  |  $500-1000 billion tokenized

2030E

Non-financial corporate & quasi sovereign debt

$187,000
billion

2030 Estimate  |  $1,900 billion tokenized