This industry will be worth $16,000 billion by 2030.

It’s not me saying it, it’s Bank of America, which estimates a $16 trillion market by 2030.

Financial giant BlackRock believes that this will be the next great revolution in finance.

Which sector do you think these 2 financial giants are talking about?

AI? Biotech? VR/AR?

No.

The market that will surely be worth $16 trillion by 2030 is: the tokenization of real-world assets.

What’s tokenization?

=> Simply put, it’s the process of attributing to a token (fragment of crypto-currency) the right and/or ownership of an asset that exists in the real world.

Example: A piece of real estate costing $100k is divided into small shares, each representing 0.01% of the real estate.

Each share will then be legally and technologically linked to a token, known as a Security Token.

So there will be 1,000 tokens distributed, and each token will be worth $100.

What advantages does this bring in concrete terms? (There are many, but here are the main ones)

• Liquidity: Buying and selling real estate in the normal world is pretty complicated. Signing, paper, contracts, waiting for a buyer, etc. By tokenizing, buying and reselling will be done in a few clicks once registered and KYC on a platform like RealT.
• Greater accessibility: Tokenization makes real estate investment accessible to a wider range of investors.
• Portfolio diversification: Investors can diversify their portfolio by investing in a variety of properties in different regions and sectors.
• Asset fractionalization: The ability to split a property into multiple units allows for better capital allocation and offers investment opportunities that investors would not otherwise have.
• Improved transparency and security: With blockchain, every transaction is recorded transparently, significantly reducing the risk of fraud and documentation errors.
• Process automation: Thanks to the use of smart contracts, many operations, such as the distribution of rental income or the management of property rights, can be automated, reducing operational costs and complexity.

In conclusion, tokenization of real-world assets, particularly real estate, offers a multitude of advantages in terms of liquidity, accessibility, diversification and security.

So get ready, because the world of finance as we know it is about to change radically.