"Wow, the bank is confident, I hope the prediction is right."
Investment bank Citi, which expects blockchain-based tokenization* of real-world assets to be widely used in the cryptocurrency world, has predicted the market will reach $4 trillion and $5 trillion by 2030.
*A process of transforming various forms of physical assets into digital assets
If the following happens then it marks an 80-fold increase over the current value of real-world assets locked on the blockchain.
According to Citi analysts in more detail, the bank envisages $4 trillion to $5 trillion in tokenized digital securities and $1 trillion in trade finance volume based on ledger technology to be distributed before 2030.
Following the $5 trillion to be tokenized, the bank estimates $1.9 trillion may come in debt followed by $1.5 trillion from real estate, $0.7 trillion from private equity and venture capital and securities between $0.5 trillion and $1 trillion.
While researchers believe that private equity and venture capital funds will be the most popular asset class, where they are likely to dominate the total market by 10% while real estate is 7.5%.
It is to be noted that the private equity market will see a faster rate of utilization due to its favorable liquidity as well as the nature of its transparency and distribution, the bank commented.
Citi also said blockchain tokenization has the potential to replace traditional financial infrastructure as it is technologically superior and provides more investment opportunities in the private market.
