Asset Tokenization Outlook in 2022
Written by EmergentX Insights team
February 21, 2022 | 1 Min
Highlights
- Asset tokenization adds value to the existing financial system by enhancing liquidity
with fractional ownership and increasing transaction efficiency by bypassing
intermediaries. - Asset tokenization will create new types of platform business models and investment
opportunity sets, leading to possibilities that have not been conceptualized yet. - STOs are regulated in major financial jurisdictions, and retail investors can invest in
security tokens as long as the issuers are compliant with regulations.
Core thesis
Asset tokenization is the process of converting physical and non-physical assets into digital
tokens on the blockchain. The potential for asset tokenization lies in bringing more real-world
assets on-chain for greater financial inclusion, liquidity and wealth creation opportunities.
Significance and Disruptive Impacts
Asset tokenization adds value to the legacy finance infrastructure by introducing fractional
ownership, enhancing liquidity, increasing transaction efficiency, and creating all-new
secondary markets. With technological advancement and institutional adoption, it is a matter
of time before tokenized assets become the global industry standard.
Expectation for 2022
- More institutional adoption in 2022
More robust infrastructure and projects will propel institutional participation
(particularly buy-side) to embrace tokenized assets. - New types of business models and investment opportunity sets emerge
Asset tokenization will create new platform business models and lead to possibilities
that have not been conceptualized yet. - Supports financial inclusion
Asset tokenization addresses long-tail financing needs and provides access to
financing for companies of all sizes.
EmergentX Digital Asset 2022 Outlook
Year of Consilience
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