The security token market is projected to be around 4 trillion by 2025, according to a study by nex.io. It’s a lot easier for an institutional investor to wrap their head around the concept of a digital token representing ownership of an asset, than, for example, a digital token that’s’ value is a reflection of the fact that the technology includes its own custody, governance, issuance, and audit functionalities.
In many real asset markets, the difference between the price at which one can buy the asset and the price at which one can sell, at the same point in time, is a reflection of both the bid-ask spread and the expected price impact of the trade on the asset. The difference can be very large in markets where trading is infrequent. In the collectibles market, this cost can amount to more than 20% of the asset value.” — Robert Breedlove, Parallax Digital