BitcoinBTC
and ethereum—the two largest cryptocurrencies— have rocketed so far this year as hyperinflation fears sweep Silicon Valley.
The bitcoin price is up around 70% since the beginning of January, triggering a surge of bullish bitcoin price predictions. The ethereum price has added a similar amount, adding around $200 billion to the combined crypto market.
Now, after BlackRock’s chief executive revealed the world’s largest asset manager is “exploring the digital assets ecosystem,” a new report has found almost $300 trillion in private assets could be tokenized on blockchains.
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“Tokenisation could open worlds not imagined yet to private assets in a similar way to how the internet and e-commerce transformed many industries over the last two decades,” the report by crypto infrastructure provider Taurus read.
Real-world assets such as equity shares, investment funds and private markets that include private equity, venture capital, real estate, and art could all be “tokenized” on a blockchain, according to the report, with “mostly paper-based” private markets potentially having more to gain from tokenization than their already electronic public counterparts.
Tokenizing securities could ease trading, enable instant settlement, create liquidity and price discovery, and lower costs, Taurus researchers found.
“Tokenization opens the door to a broad universe of new possibilities, which the financial industry is only starting to comprehend and embrace,” Jacques Iffland, partner at Lenz & Staehelin and chair of the Capital Markets and Technology Association (CMTA), wrote in the report’s foreword, adding blockchain technology represents a “quantum leap” for trading.
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The global private market dwarfs listed markets in what could be an “untapped” opportunity for … [+] tokenization.
Taurus / Tokenization—practitioner point of view
“Private funds are very restricted in terms of liquidity options, and by natively issuing shares on chain, they can then open up marketplaces to give investors the opportunity to exit,” Morgan McKenney, the chief executive of Provenance Blockchain Foundation, told DL News.
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