What Does Tokenization Mean for Traditional Finance?

By Lior Lamesh, CEO and Co-Founder of GK8

One of the least compelling, yet frustratingly persistent, arguments against crypto is that it’s “magic money” that’s not backed by anything. Anyone who knows anything about digital assets understands exactly why that talking point is a misconception, but it remains key to blinding normies to blockchain’s advantages. 

That’s about to change, not least because the world’s largest asset manager—among other institutional players—has expressed interest in tokenizing securities in recent months. A Boston Consulting Group report suggests that by 2030, the tokenized real-world asset (RWA) market could surge to $16 trillion. Tokenization will drive blockchain adoption by traditional financial institutions in the coming months and years, and here’s what it means for the industry.

Capitalizing on growing demand

In simple terms, tokenizing real-world assets means putting their ownership on the blockchain, and in some cases fractionalizing that ownership with the use of smart contracts. 

So, for example, if you tokenize ownership of an expensive NYC apartment, you’re…