Tokenization will revolutionize the way we fund, trade, and manage assets. It is expected to disrupt nearly every industry and sector of our modern society – from investing and asset management, through manufacturing to real estate or even art. We conservatively estimate that the total market value of tokenized assets will significantly exceed USD 10 trillion by 2030. In this article, we lay out the basics of tokenization, share our view on the main use cases, as well as discuss what you need to consider for your business
Key Examples Leading hotel chain seeks to implement a technological program that will allow it to innovate in the sector, expand its operations and boost the fragmentation model of real estate investments through Blockchain technology A German industrial player issued a EUR 60 mn digital bond on the Polygon blockchain, selling the bond directly to three institutional investors without requiring an intermediary bank Major US PE firm opened up part of its USD 4 bn Health Care-orientated fund to be tokenized on the Avalanche blockchain, granting access of the asset class to investors with a fraction of the wealth normally required Swiss private bank tokenized its own shares, becoming the first bank to issue shares as ledgerbacked securities and doing so in accordance with standards set by Swiss regulatory bodies
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Key Benefits Increased accessibility and transparency Trading through registered system Blueprint for future real estate tokenization Removed intermediaries Paperless Lower transaction costs Faster settlement speed Access to more investors Way for individual investors to diversify their investments Lower costs Liquidity for SMEs Increased access to investors for SMEs Exposure for investors to traditionally inaccessible markets Removal of middlemen
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Quotes Our tokenization platforms smart certificates can be fragmented without prejudice to the propertys real value. Once fragmented, they grant each owner a digital copy and a unique key, ensuring that each owner receives their dividends automatically By moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past With its ability to digitize operational inefficiencies and increase ease of use for individual investors, blockchain technology has the potential to play an important role in the future of private markets Our vision is to make it possible for our clients to take full advantage of [the] rationalization and efficiency gains that the distributed ledger technology offers in this field Founder, US Tokenization Platform Corporate Treasurer, German industrial player Managing Dir. & Co-Head, Major US PE firm Deputy CEO, Swiss private bank
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Source: Roland Berger 9 We believe that the following five segments of the economy stand to benefit the most from implementing tokenization in their daily operations and, as a result, should develop their tokenization propositions in the near future. enhancing liquidity and transparency. Small investors can directly fund projects, while Five segments of real economy most apt for tokenization: secondary market trades boost liquidity. For sustainability, blockchain offers an immutable ledger for carbon offset certificates, ensuring uniqueness and preventing double counting. These tokenized certificates can be traded in decentralized marketplaces, facilitated by smart contracts Financial Services 1 There seem to be endless tokenization use cases within the Financial Services industry, including services related to investing in tokenized assets such as custody, training,
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