Friday 29 Mar 2024
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KUALA LUMPUR (March 31): Investment bank Citi is betting on the blockchain-based tokenisation of real-world assets to become the next “killer use case” in crypto, with the firm forecasting the market to reach between US$4 trillion (RM17.64 trillion) and US$5 trillion by 2030.

In a report on Friday (March 31), crypto industry portal Cointelegraph said that would mark an 80-fold increase from the current value of real-world assets locked on blockchains, citing Citi in its “Money, Tokens and Games” March report.

“We forecast US$4 trillion to US$5 trillion of tokenised digital securities and US$1 trillion of distributed ledger technology-based trade finance volumes by 2030,” Citi’s analysts said.

Of the US$5 trillion to be tokenised, the bank estimated that US$1.9 trillion will come in the form of debt, followed by US$1.5 trillion from real estate, US$0.7 trillion from private equity and venture capital, and between US$0.5 trillion and US$1 trillion from securities.

The research suggested that private equity and venture capital funds will become the most tokenised asset class, capturing 10% of its total addressable market, with real estate coming in next at 7.5%.

Private equity markets will likely see faster adoption rates, because of their favourable liquidity, transparency and fractionalisation properties, the bank said.

Citi said that blockchain tokenisation would supersede legacy financial infrastructure, because it is technologically superior and provides more investment opportunities in private markets.

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