The total size of tokenised illiquid assets, including real estate and natural resources, is expected to reach a valuation of $16.1 trillion by 2030, as per the Boston Consulting Group (BCG), according to Cointelegraph.
Insights from Cointelegraph, through a recently published report from BCG and digital exchange for private markets ADDX, authors which included Sumit Kumar, managing director, BCG, and Darius Liu, co-founder, ADDX, made the point that a majority part of the world’s wealth remains locked in illiquid assets. The report stated that illiquid assets include pre-initial public offering (IPO) stocks, real estate, private debt, revenues from small and medium businesses, physical art, exotic beverages, private funds, wholesale bonds, among others. Furthermore, reasons for the asset illiquidity have been designated to factors such as limited affordability for mass investors, lack of wealth manager expertise, limited access such as when assets are restricted to cliques (in the case of fine art and vintage cars), regulatory hurdles and other scenarios in which users have difficulty acquiring or trading an asset.
On the basis of information by Cointelegraph, the report mentioned that on-chain tokenisation could help with the solving of this problem, a market which overtook $2.3 billion in 2021 and is expected to reach $5.6 billion by 2026. By 2030, the authors anticipate the on-chain asset tokenisation sector to reach $16.1 trillion, which contributed towards financial assets, home equity, and other tokenisable assets such as infrastructure projects, car fleets, patents, among others.
Moreover, Cointelegraph noted that its research terminal unveiled that real estate assets account for a 40% increase in pipeline for certain technology providers, which makes it capable as a primary sector for security token offerings. Earlier, digital asset investment platform Zerocap made the announcement that companies on the Australian Securities Exchange (ASX) could ensure trading in tokenised bonds, equities, funds or carbon credits post a proof-of-concept trial.
(With insights from Cointelegraph)
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