How FED Estimated Tokenized Assets to be $2.15B
The Board of Governors of the Federal Reserve: “Using press releases, news articles, and public data sources, we estimate that the market value of tokenized assets on permissionless blockchains is $2.15 billion as of May 2023."
There is no room for blindspots for regulators when institutions like The European Investment Bank, J.P Morgan, and Goldman Sachs all complete tokenization of real-world assets, bonds, etc.
The new report by The Board of Governors of the Federal Reserve, “Tokenization: Overview and Financial Stability Implications (2023)," The FED highlights not only the disruptive abilities of the technology but also why it is gaining traction.
Total value locked (TVL) is rising, and so is lending
While many bright-minded people can launch a cryptocurrency, real-world assets are different.
This is a process requiring asset ownership, filing legal documents, and technical know-how. Hence not done overnight, but neither was any solid business.
Digital assets need ‘reference assets’ to succeed in 2023
The FED defines tokenizations as:
“tokenization refers to the process of linking reference assets to crypto tokens via. design features that link the token’s price to the value of the token’s reference asset.”
Tokenization of securities, security token offerings, and tokenization of real estate are hot topics, and they are because they enable features like instantaneous smart contract settlement, transparency, and cost-saving.
While TVL for real-world assets is rising, the opposite is the case for the cryptocurrency industry.
DigiShares is the market-leading white-label software platform used to tokenize real estate assets. Still, it is also being used for other real-world assets such as resources or financial instruments. They are currently “eating their own medicine” by doing a round on Republic
At RealEstate.Exchange we list tokenized real estate assets for secondary market trading. Currently, US LLC to a global investor base.
Reach out to emil@realestate.exchange to learn more — or
Learn tokenization of real-world assets!
Our 4-hour online course is a great way to get started. https://www.udemy.com/course/tokenization-of-real-world-assets-on-the-blockchain/
All data is taken from the public FED report: https://www.federalreserve.gov/econres/feds/files/2023060pap.pdf
Cited: Carapella, Francesca, Grace Chuan, Jacob Gerszten, Chelsea Hunter, and Nathan Swem (2023). \Tokenization: Overview and Financial Stability Implications,” Finance and Economics Discussion Series 2023–060. Washington: Board of Governors of the Federal Reserve
