Opinion: Asset tokenization may reshape the financial market

Tokenization has become a hot topic on Wall Street and in the crypto-finance sector in 2024. Its core is to digitize and put real-world assets on the blockchain. Although only about 0.003% of the world's assets are tokenized, institutional interest is growing rapidly, especially after the Trump administration is expected to relax crypto regulations and BlackRock launched a tokenized money market fund. Supporters say it may even be bigger than the Internet. However, tokenization still faces risks such as regulation, hacker attacks and mispricing. Some experts warn investors to be wary of tokenizing low-quality assets. Despite the challenges, tokenization is seen as a potential revolution in the modern financial system and may reshape the market operation model. It is reported that giants such as Visa, Tether and Mastercard have accelerated their layout of tokenization, and JPMorgan's Kinexys platform has a daily trading volume of US$2 billion. Boston Consulting Group predicts that by 2030, the asset management scale of tokenized funds will increase from the current US$2 billion to US$600 billion. Tokenization is believed to increase asset liquidity, reduce transaction costs, and speed up transactions. (Bloomberg)