Tokenization is booming: Huge opportunities from cryptocurrency

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Tokenization of Real Assets is Rising

Tokenization of real assets (RWA) is moving from theory to practical financial instruments. Financial institutions and local blockchain companies have taken many steps to promote RWA. Last week, BlackRock filed to create a share class on digital ledger technology for the $150 billion Treasury Trust fund. The DLT shares will track the BLF Treasury Trust Fund (TTTXX).

On the same day, Libre announced plans to tokenize 500 million USD of Telegram's debt through the new Telegram Bond Fund (TBF). In Dubai, MultiBank Group signed a 3 billion USD agreement with real estate group MAG and blockchain infrastructure provider Mavryk. This is currently the largest RWA tokenization initiative.

This rise comes from the clarity in regulations in major markets and stronger technology. Major institutions are also getting involved, such as BlackRock, Citi, and Franklin Templeton. According to Marcin Kazmierczak, co-founder of RedStone, the adoption by large institutions increases the credibility of RWA.

Clear regulations and technological opportunities, especially in cryptocurrency wallets, also drive Tokenization. Macroeconomic pressures force organizations to seek effective measures and liquidity in traditionally illiquid markets.

Ethereum remains the center of RWA tokenization thanks to its mature ecosystem and strong infrastructure. However, specialized networks like Canton Network, Plume, and Ondo Chain are creating attractive alternatives.

Challenges remain, especially regarding regulations and technical limitations. However, hybrid models are gaining traction as they offer the privacy of a licensing system along with future public compatibility.

It is predicted that over 10% of global financial assets will be Tokenized by the end of this decade, with the RWA market potentially reaching 30-50 trillion USD. This growth could change the way financial assets are managed and utilized worldwide.

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