Theme 8: Asset Tokenization in 2022

2022 Snapshots Theme 8: Asset Tokenization in 2022

15tr

Estimated Tokenized Market Cap by 2025 (US$) ▪ Asset tokenization adds value to the existing financial system by enhancing liquidity with fractional ownership and increasing transaction efficiency by bypassing intermediaries.

▪ Asset tokenization will create new types of platform business models and investment opportunity sets, leading to possibilities that have not been conceptualized yet.

▪ STOs are regulated in major financial jurisdictions, and retail investors can invest in security tokens as long as the issuers are compliant with regulations.

Core thesis

Asset tokenization is the process of converting physical and non-physical assets into digital tokens on the blockchain. The potential for asset tokenization lies in bringing more real-world assets on-chain for greater financial inclusion, liquidity and wealth creation opportunities.

Significance and Disruptive Impacts

Asset tokenization adds value to the legacy finance infrastructure by introducing fractional ownership, enhancing liquidity, increasing transaction efficiency, and creating all-new secondary markets. With technological advancement and institutional adoption, it is a matter of time before tokenized assets become the global industry standard.

57%

Projected tokenized financial assets by 2025

Expectation for 2022

1. More institutional adoption in 2022 More robust infrastructure and projects will propel institutional participation (particularly buy-side) to embrace tokenized assets.

2. New types of business models and investment opportunity sets emerge Asset tokenization will create new platform business models and lead to possibilities that have not been conceptualized yet.

3. Supports financial inclusion Asset tokenization addresses long-tail financing needs and provides access to financing for companies of all sizes.