Blockchain technology is revolutionizing traditional finance as banks and investment firms increasingly tokenize real-world assets like real estate and Treasury bonds. The market for these digital representations is projected to grow from under $10 billion in 2023 to over $30 billion by 2025. Major financial players are launching pilot programs, offering products such as 24/7 trading of Treasury bill tokens and fractional ownership in real estate funds.
Institutions like Deutsche Börse and the U.S. Department of Commerce are integrating blockchain for data publication and economic data management, respectively. Despite challenges like low trading volumes and regulatory uncertainties, analysts predict the tokenized asset market could reach $2 trillion by 2030. This shift towards tokenization enhances blockchain's credibility, with financial institutions developing better custody solutions and compliance frameworks, paving the way for broader adoption and efficiency gains in the financial sector.
Tokenized Assets Gain Traction in Institutional Finance
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