The State of Tokenization and the Next Generation of Markets

Tokenization has been a hot topic in the world of blockchain technology for some time now, and it’s easy to see why.
It enables fractional ownership of assets, allowing investors to make smaller investments in assets like real estate.

For many investors and asset managers, this is a game-changer, as it opens up new opportunities that were previously unavailable.

The Introduction of Tokenization

Tokenization first appeared on the scene in 2017 with the launch of Ethereum-based tokens known as ERC-20 tokens. These tokens enabled fractional ownership of digital assets such as cryptocurrencies and other digital collectibles.

The ERC-20 token standard was quickly adopted by other platforms such as Stellar and NEO, which opened up tokenized asset investment opportunities to even more investors.

Real Estate is Currently the Largest Asset Class of Tokenization

In recent years, there has been a surge in interest in tokenized asset investment opportunities for real estate projects. Many projects have already successfully launched tokenized real estate through software providers such as DigiShares.

These projects demonstrate that there is a strong demand for tokenized asset investment opportunities and that investors are willing to take advantage of these new opportunities.

Not long ago, the CEO of BlackRock, Larry Fink was quoted for saying:

“The next generation for markets, the next generation for securities, will be tokenization of securities.”

The Future and Opportunity of Tokenization

As more companies recognize the potential benefits offered by tokenizing their assets, we expect to see an increase in interest in this form of investing over the coming years. In addition, major players such as banks and governments are beginning to explore ways they can use blockchain technology and tokenized assets for their own purposes.

This could lead to even greater adoption of these technologies by mainstream institutions, creating additional opportunities for investors interested in taking advantage of this new form of investing.

With more companies embracing tokenized asset investment opportunities and major institutions exploring ways they can use this technology, it’s likely that we will see increased adoption over time, which could open up even more possibilities for investors looking to capitalize on this form of investing.