..Market Tokenization: is the process of turning a physical or digital asset into a token. Allows the asset to be traded on a blockchain meaning it’s secure transparent and tamper-proof.
The global tokenization market is forecast to grow from $5.9 billion in 2019 to $24.8 billion by 2025. The applications ranging from securities trading to supply chain management. If you want to know more about this growing market, read on!
Definition of Tokenization
Tokenization is the process of converting an asset or liability into a digital token. It enables new and innovative ways to manage and trade securities, commodities, and other assets. There are two main types of tokenization: core tokenization and secondary tokenization.
Core tokenization refers to the creation of digital tokens that represent real-world assets or liabilities. Tokens can be used for transactions on a blockchain network or other platform. For example: Ethereum is a platform that supports the creation of smart contracts and digital tokens.
Secondary tokenization refers to the issuance of digital tokens that do not represent any real-world assets or liabilities.
Global Tokenization Market Size (US$ Mn)
The global tokenization market is estimated to be worth US$ 24.2 billion by 2022. According to a new report by Markets and Markets. The growth of the blockchain technology has paved the way for the development of tokenized assets and has led to an increase in the demand for tokens.
Tokenization is a process that converts physical or digital assets into digital tokens that can be stored and traded on a blockchain network. This has helped to drive the growth of the global tokenization market as it allows users to own and trade digital assets without having to deal with traditional payment processes or intermediaries. The adoption of digital tokens by businesses has also led to an increase in their value as they provide investors with a way to participate in the success of these businesses through their investment in virtual shares rather than traditional stock markets.
Type of Assets Tokenized
The global tokenization market is projected to reach $8.5 billion by 2025, according to a study published by Markets and Markets.
The primary drivers of the growth in the global tokenization market are the growing interest in blockchain technology and its potential applications, such as trust and security enhancement, company asset management, and cross-border payments. Additionally, increasing regulatory compliance requirements are also contributing to the growth of the market.
Some of the key players in the global tokenization market are IBM, Microsoft Corporation, Ripple Labs Inc., SyncFab Inc., and TokenPost Inc.
Real estate tokenization
Real estate tokenization is a relatively new concept that is gaining popularity in the world of real estate investing. It involves the process of converting physical real estate assets into digital tokens that can be traded on a blockchain network. This allows investors to purchase fractional ownership of a property, giving them access to the benefits of real estate investing without the high barriers to entry.
Real estate tokenization offers several benefits over traditional real estate investing. First and foremost, it provides a more efficient and streamlined method for buying and selling property. Transactions can be completed quickly and securely, with minimal intermediaries involved. This reduces transaction costs and makes investing in real estate more accessible to a wider range of investors.
Another advantage of real estate tokenization is the increased liquidity it provides. Because tokens can be traded on a blockchain network investors can easily buy and sell their ownership shares in a property without having to wait for the property to be sold or for other investors to buy them out. This creates a more dynamic market for real estate investing, which can help to increase the value of the underlying property.
Real estate tokenization also offers greater transparency and accountability.
Providing a clear and auditable record of all ownership and transactional activity. This can help to reduce the risk of fraud and improve trust in the real estate investment market.
Overall, real estate tokenization is an exciting development in the world of real estate investing. By leveraging blockchain technology it offers investors a more efficient. Transparent and accessible way to invest in real estate, while also providing greater liquidity and flexibility. As the technology continues to mature and become more widely adopted. Can expect to see even more innovation and growth in this space.
Applications of Tokenization
According to a report by Markets. The report defines tokenization as the process of transforming physical assets. Intellectual property into digital equivalents that can be used in the financial system.
The key drivers for the growth of the global tokenization market include increasing. Use cases such as securities settlement and capital raising, and improving regulatory environment. Additionally, developments in blockchain technology are fueling the growth of this market.
The key applications of tokenization include securities settlement, capital raising, and payments. Securities settlement is one of the most important applications. Tokenization as it helps reduce counterparty risk and speed up transactions.
Capital raising is another application of tokenization that allows companies to raise funds without involving traditional investors. Payments are one of the most popular applications of tokenization. Because it reduces processing time and costs associated with traditional payment systems.
Trends in the Global Tokenization Market
The global tokenization market is expected to reach $10.8 billion by 2022. According to a report by Markets and Markets. The growth of the global tokenization market is mainly due to the increasing demand for digital assets and blockchain technology.
The report defines the global tokenization market as the process or process of transforming traditional assets such as shares, bonds, and commodities into digital tokens. The report covers the following market segments:
Tokenization Platforms: These platforms help businesses to issue, trade, and manage digital tokens. They include Ethereum-based platforms like Digishares, Ethfinex and Waves Go, as well as NEO-based platforms like NeoX and Neutrino.
Digital Asset Services: These providers offer services that allow businesses to store, manage, and use digital assets. They include Coinbase Pro, Bitfinex, Binance Coin Exchange Ltd., Gemini Trust Company LLC., and Elastos Corp..
Financial Institutions: These institutions provide services that allow businesses to issue, trade, and manage digital tokens. They include Citigroup Inc., J P Morgan Chase & Co., HSBC Holdings Plc., ING Group NV, and UniCredit SpA.
Applications of the global tokenization
The market includes securities settlement systems (SSS), asset management solutions (AMS), electronic payments solutions (EPS), loyalty programs, gaming applications (GAP), supply chain management (SCM), and others.