Citi is Feeling Bullish about Blockchain
Virtually everything can be tokenized, says investment bank Citi, predicting a big future for blockchain.
In a new report “Money, Tokens and Games”, investment bank Citi makes it clear that blockchain is a disruptive technology and believes its future looks bright.
The New York-based bank explains that almost anything of value can be tokenized. Accordingly, the tokenization of financial and real-world assets could be the “killer use-case” for blockchain to make a breakthrough.
“We forecast $4 trillion to $5 trillion of tokenized digital securities and $1 trillion of distributed ledger technology (DLT)-based trade finance volumes by 2030,” they write.
Source: “Money, Tokens and Games”
Emphasizing that the tokenization of real-world assets unlocks a new way to monetize illiquid assets, they outline five spheres where they expect it to flourish the most. They include non-financial corporate and quasi sovereign debt, real estate funds, private equity/venture capital, securities financing and collateral, trade finance.
The authors also add that to become mainstream, blockchain needs the help of four technology enablers. They include decentralized digital identities, zero-knowledge proofs, Oracles, and secure bridges.
“The legal plumbing also needs to be altered to enable smart legal contracts that will provide a whole new set of rails for global commerce and finance to run on,” they write.
In addition, the bank hypothesizes that daily activity will boost blockchain user numbers.
“The success of blockchain adoption will be measured by when it is being used by a billion plus end users who do not even realize they are using the technology. Blockchain-based products can make a significant impact in terms of wide consumer adoption in digital currency, especially central bank digital currency (CBDCs), gaming, and social,” they write.
Previously, Gagarin News reported that Circle has released a new annual report.
