Tokenization, the process of converting real-world and financial assets into digital tokens, is gaining traction among major institutions. The World Economic Forum highlighted its potential to integrate traditional finance with blockchain, potentially expanding liquidity and capital efficiency. The tokenization industry is poised for growth in the U.S., with support from figures like BlackRock CEO Larry Fink, who advocates for the rapid approval of tokenized stocks and bonds by the SEC. The market for real-world asset tokenization, excluding stablecoins, is nearing $20 billion.
Key takeaways:
- CME Group is piloting solutions for tokenized assets using Google Cloud Universal Ledger to improve capital market efficiency and wholesale payments.
- Google Cloud has been expanding into blockchain technology, adding multiple blockchains to its data warehouse since 2018.
- Tokenization is gaining interest from major institutions, with potential to significantly expand liquidity and capital efficiency in financial markets.
- BlackRock CEO Larry Fink supports the rapid approval of tokenization for stocks and bonds, highlighting growing industry interest.