It seems that the blockchain-based applications are expected to be an influence towards the concept of tokenisation as it can be beneficial for the long-term decentralised landscape. Experts believe that blockchain-backed asset tokenisation can bring about a new definition of investments and ownership models, along with establishment of connection between business models and tokenised assets.
According to MarketsandMarkets, a market research company, the global tokenisation market is expected to grow from $2.3 billion in 2021 to $5.6 billion by 2026, at a compound annual growth rate (CAGR) of 19%. “I believe tokenisation has increased the utility of blockchain. Blockchain-based tokenisation has the potential to offer security, lesser intermediaries, and greater automation along with transparency in transactions. Based on recent industry surveys, we could see a big push in the coming years where more sectors could adopt this technology,” Prashant Kumar, founder and CEO, weTrade, a cryptocurrency-based platform, told FE Blockchain.
Insights from market-oriented research has shown that blockchain-based tokenisation carries the potential to ensure proof of ownership and can enhance the liquidity potential of assets. As stated by Polymath (POLY), a blockchain-based token platform, blockchain’s utilisation can bring increased efficiency and reduced error to the creation, issuance, and management of security, which helps with cost reduction as well.
“When an asset is tokenised, it can be traded 24 by 7 across the global market. This makes it easier to buy and sell assets, and also allows for price discovery. Blockchain-based tokenisation can help reduce fraud and counterfeiting. When an asset is represented by a digital token on a blockchain, it becomes difficult to counterfeit or tamper with. This could have implications for sectors such as luxury goods and collectables,” Srinivas L, CEO and CTO, Rooba.Finance, a blockchain and smart contract-based…
