Can Bitcoin Assist in the Tokenization of Additional Assets?

Assets like bitcoin and Ethereum have soared in recent weeks, and the sudden bull run is causing many big financial players – such as Fidelity and BlackRock – to increase their stakes in the crypto space and try to do more with digital tokens.

Bitcoin Could Give Rise to Further Tokenization

The bull run has gotten so many people excited that according to a new report issued by crypto infrastructure provider Taurus, roughly $300 trillion in private assets could be digitized in the coming future. The report reads:

Tokenization could open worlds not imagined yet to private assets in a similar way to how the internet and e-commerce transformed many industries over the last two decades.

2023 is, thus far, turning out to be the complete opposite of 2022. While there’s still a long way to go and an even higher degree of healing to be had before assets like bitcoin are once again at their November 2021 highs, the space appears to be turning itself around from the horrible bearish conditions it faced during the previous 12 months.

2022 was arguably the worst year on record for crypto. During that time, assets like bitcoin lost more than 70 percent of their value, and they crashed and burned like nobody’s business. This led to the entire space losing more than $2 trillion in overall valuation. For many, the situation was particularly dire as they had likely put more than they could afford into the space, hoping to get rich over time.

Now, however, the prices of assets like bitcoin appear to be turning themselves around. The currency recently reached a nine-month high of about $28,000 per unit, and while the asset has again been rocked due to recent (and negative) news surrounding Binance, it’s unlikely the asset will stay down for the count for long.

In the report’s early sections, Jacques Iffland – partner at Lenz & Staehelin and chair of the Capital Markets and Technology Association (CMTA) – explained:

Tokenization opens the door to a broad universe of new possibilities, which the financial industry is only starting to comprehend and embrace.

Morgan McKenney – chief executive of the Provenance Blockchain Foundation – also threw his two cents into the mix, commenting:

Private funds are very restricted in terms of liquidity options, and by natively issuing shares on-chain, they can then open up marketplaces to give investors the opportunity to exit.

This Will Help Crypto Reach Its Ultimate Goal

Furthermore, the tokenization of various assets could ultimately make them more accessible to the public and thus bring the initial dreams and goals of crypto closer to becoming realities.

The driving force behind crypto was that everyone should have a chance to invest and garner financial services and tools that will allow them to live applicable lives, something that standard financial institutions can often restrict.

Tags: bitcoin, Morgan McKenney, tokenization