{"id":164371,"date":"2022-09-27T07:36:59","date_gmt":"2022-09-27T07:36:59","guid":{"rendered":"https:\/\/precoinnews.com\/?p=164371"},"modified":"2022-09-27T07:36:59","modified_gmt":"2022-09-27T07:36:59","slug":"almost-everything-could-be-tokenized-in-5-10-years-matrixport-co-founder","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/almost-everything-could-be-tokenized-in-5-10-years-matrixport-co-founder\/","title":{"rendered":"Almost everything could be tokenized in 5-10 years \u2014 Matrixport co-founder"},"content":{"rendered":"
In five to ten years, almost every \u201creal world\u201d asset class could be tokenized in the form of a nonfungible token (NFT) according to Cynthia Wu, co-founder of digital asset service platform Matrixport. <\/p>\n
Speaking to Cointelegraph, Wu said the best case for NFTs would see the widespread representation of real-world assets to be stored and traded on-chain:<\/p>\n
\u201cEventually all the major financial asset classes are going to be represented on this new financial infrastructure [and] NFTs could be our instrument to represent off-chain assets like real estate deeds, equities or bonds.\u201d<\/p><\/blockquote>\n
The move on-chain would make these real world assets \u201cmore liquid and more tradable\u201d which would improve price discovery and transaction activity, Wu added.<\/p>\n
But Wu said that while it\u2019s great that we\u2019ve created over two trillion worth of digital native assets on-chain from Bitcoin (BTC), Ethereum (ETH) and other tokens, the only niche to have generated NFT transaction activity has come from digital collectibles \u2014 which hasn\u2019t really helped institutional adoption:<\/p>\n
\u201cWe haven’t really been seeing off-chain assets being represented on-chain […] we’re now really only at the first 3-5% of it.\u201d<\/p><\/blockquote>\n
But nonetheless, Wu is confident that the tide will turn.<\/p>\n
Earlier this month, a report from Boston Consulting Group (BCG) estimated the total size of tokenized illiquid assets to reach $16.1 trillion by 2030.<\/p>\n
BCG predicted much of this tokenization to come from pre-initial public offering (IPO) stocks, real estate, private debt, and revenue generated from small to medium-sized businesses.<\/p>\n
However, while the tokenization of real-world assets has piqued the interest of financial institutions, Wu said some have been a bit reluctant to move on from the legacy systems that have served them well over the years.<\/p>\n
Related: <\/em><\/strong>Asset tokenization: A beginner\u2019s guide to converting real assets into digital assets<\/em><\/strong><\/p>\n
Wu pointed out the traditional financial system hasn\u2019t accounted for the trading of nonfungible assets because they can\u2019t easily be exchanged the same way a fungible or divisible asset can, but tokenization on the blockchain provides a solution for that. <\/p>\n
She also argued that blockchain infrastructure is the superior option to legacy systems, citing cost efficiencies, improved liquidity, 24\/7 market access, and the removal of intermediaries as the main factors that would lead to a more streamlined financial system.<\/p>\n
<\/p>\n
Matrixport was established in Feb. 2019, and currently manages between $3-4 billion in digital assets from a broad mix of retail and institutional clients.<\/p>\n