Trillion

World-renowned asset management firm Bernstein, overseeing more than $800 billion in assets, recently issued a research report praising the benefits of tokenization. This process, converting real-world assets into blockchain-based tokens, is simple, operationally efficient, and offers improved liquidity and accessibility. The report also boldly projects the tokenization market to swell to $5 trillion within the next five years.&nbsp; 
<h2 style="text-align: justify" id="tokenization-market-could-soar-to-5-trillion">Tokenization Market Could Soar to $5 Trillion</h2> 
Bernstein anticipates the opportunity within the tokenization market to reach up to $5 trillion in the next five years. The firm expects this growth to be spearheaded by stablecoins, central bank digital currencies (CBDCs), private market funds, securities, and real estate.&nbsp; 
The report predicts currency tokenization via stablecoins and CBDCs, applicable to on-chain deposits and payments, will comprise about 2% of the global money supply in the next five years. This translates to an estimated $3 trillion in tokenized currency.&nbsp; 
Lead analysts including Gautam Chhugani project a surge in circulation of stablecoins and CBDC tokens within the next five years, led primarily by China’s CBDC program. The report notes, “Combined with yield generating decentralized markets, stablecoins and CBDC tokens will compete with bank deposits as an investment or savings instrument.”&nbsp; 
<img decoding="async" loading="lazy" class="aligncenter wp-image-85443 size-full" src="https://en.coin-turk.com/wp-content/uploads/2023/06/crypto-14.png" alt="" width="1928" height="996" srcset="https://en.coin-turk.com/wp-content/uploads/2023/06/crypto-14.png 1928w, https://en.coin-turk.com/wp-content/uploads/2023/06/crypto-14-300x155.png 300w, https://en.coin-turk.com/wp-content/uploads/2023/06/crypto-14-768x397.png 768w, https://en.coin-turk.com/wp-content/uploads/2023/06/crypto-14-1536x793.png 1536w, https://en.coin-turk.com/wp-content/uploads/2023/06/crypto-14-1200x620.png 1200w" sizes="(max-width: 1928px) 100vw, 1928px"> 
<h2 style="text-align: justify" id="regulatory-uncertainty-the-main-hurdle-for-tokenization">Regulatory Uncertainty: The Main Hurdle for Tokenization</h2> 
However, Bernstein did note the current regulatory uncertainty surrounding tokenization. Success in utilizing blockchain for tokenization could hinge on policymakers understanding the benefits of blockchain and the integral part cryptocurrencies play in blockchain transactions.&nbsp; 
The report states, “How policymakers will regulate <a href="https://en.coin-turk.com/investing-in-cryptocurrencies-pioneering-blockchain-solutions-with-swift-and-chainlink/" data-wpel-link="internal">Blockchain</a>-based companies and how they will perceive the tokenization of real-world assets will be determinant.” It also cautioned, “Regulations could dull the advantages of tokenization.”&nbsp; 
The post <a rel="nofollow" href="https://en.coin-turk.com/tokenization-benefits-highlighted-by-bernstein-foresees-5-trillion-market-in-five-years/" data-wpel-link="internal">Tokenization Benefits Highlighted by Bernstein, Foresees $5 Trillion Market in Five Years</a> appeared first on <a rel="nofollow" href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Tokenization Benefits Highlighted by Bernstein, Foresees $5 Trillion Market in Five Years

Table of Contents

COINTURK NEWS

Other articles published on Jun 20, 2023

Crypto Analyst: Altcoin Accumulation May Last a Few More Weeks

New Crypto Report from Asset Management Company Bernstein: 'Tokenization Could Be an Opportunity'!

Ninja Warriors Meta launching second presale round

UK House of Lords Passes Bill Recognizing Crypto as a Regulated Activity

XRP Gains Momentum in Social Volume as Bitcoin Records Declines

Bitcoin Exchange Binance Lists Trading Pairs For Two Altcoins! Came!

Join our free newsletter for daily crypto updates!