By Colin Butler, Global Head of Institutional Capital at Polygon Labs
From TradFi leaders to the crypto maxis, everyone predicts that real-world asset tokenization will eventually become a multi-trillion dollar market in the foreseeable future. But while we’ve already seen some compelling use cases, these are a drop in the ocean compared to the flood of digitized assets that could move on-chain in the next few years. When will today’s trickle of tokenization turn into a torrent and what is holding it back?
This October, Forbes published a deep dive into the issue under the provocative headline “Why Tokenization is Failing.” The author provides a troubling litany of failed or underwhelming digitization projects and concludes that the issue hindering the adoption isn’t technology but trust. I beg to differ.
The Calm Before the Storm
While a major paradigm shift toward tokenization might not be immediately evident today, the financial industry as a whole is already gearing up to embrace digitized assets, a trend set to continue into the New Year. Inevitably, we will soon see even more structured instruments like assets built from new revenue sources such as private credit — the logical next step for financial products that are inherently…
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