Thanks to tokenization, individuals can transfer any assets across platforms nearly instantly, whereas banks or conventional brokers might need several days or even weeks for this, clarified the top manager from Kraken.
According to Greenberg, tokenization removes the limitations of the traditional finance and securities market, which had remained unchanged for more than half a century. Transactions with tokenized shares settle in seconds, and this does not demand the substantial time commitment usually associated with clearing procedures, the representative of the crypto exchange remarked happily.
The Kraken executive proclaimed the “arrival of the tokenization epoch.” Tokenization enables the storage of stocks, precious metals, or foreign currencies on the blockchain, depending on one’s preferences and financial plans, Greenberg added.
According to RWA.xyz data, the volume of tokenized assets is currently estimated at $415 billion. Boston Consulting Group forecasts that this volume could climb to $16 trillion by 2030. If McKinsey & Company’s projection is correct, the tokenized asset market might not exceed the $20 trillion mark by 2030.
Recently, the chairman of the US Securities and Exchange Commission (SEC), Paul Atkins, spoke in favor of tokenization, calling blockchain technology an effective method for modernizing traditional finance, equities, and bonds.
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