Crypto Updates

Tokenization Isn’t ‘Failing,’ It Hasn’t Even Started Yet. But 2024 Will Change That

Tokenization Isn't 'Failing,' It Hasn't Even Started Yet. But 2024 Will Change That

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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