- Stellar (XLM) is making is spearheading asset tokenization as the crypto industry is working to recover from the current winter period.
- Asset tokenization might reach $16.1 trillion by 2030.
Asset tokenization will likely be the next big thing in crypto, lifting the industry from its current winter season, and Stellar is placing itself at the forefront of making this happen.
Stellar, an open-source blockchain network for storing and moving money, is making headlines in asset tokenization. The money storage and moving platform is in the business of tokenizing real-world assets, where investors can create, issue, and manage digital tokens to represent their real-world and fiat assets. Stellar became the first blockchain to host a U.S.-registered fund after integrating Franklin OnChain U.S. Government Money Fund (FOBXX) on the network.
According to a Reddit post, Stellar is the leading platform in asset tokenization in digital funds and treasuries. The post noted that over $300 million in tokenized digital funds have been issued on Stellar by Franklin Templeton and WisdomTree.
Stellar offers the user all the advantages of asset tokenization, including reducing the investment size. Lowering the threshold that crypto investors can gain exposure to an asset might look trivial initially, but it eventually benefits all involved parties. Lowering the entry point brings democracy to investing by offering opportunities to a more prominent investors’ pool, increases asset liquidity, and eases funding access for token issuers.
Investors can exploit the Stellar resources for asset control to meet all their compliance needs and access power global payments 24/7.
The Stellar native token XLM, which was previously listed by the SEC as illegal trading security, has experienced massive growth after winning the case and the commencement of security issuance. XLM prices have hiked and are only second to XRP among all the tokens listed by the SEC.
The price growth has solidified the Stellar protocol as one of the top tokens and caused steady growth of the Stellar ecosystem.
Asset Tokenization to Reach $16.1 Trillion by 2030
The Stellar developments have come months after the Relevance of on-chain asset tokenization in ‘crypto winter, a report done by ADDX and Boston Consulting Group. The report, compiled in Sep 2022, predicted that the aggregate tokenized illiquid assets could reach $16.1 trillion by 2030.
The authors mentioned that “a large chunk of the world’s wealth today is locked in illiquid assets.” the report stated that illiquid assets include real estate, pre-initial public offering (IPO) stocks, private debt, physical art, income from small and medium businesses, exotic beverages, wholesale bonds, private funds, and many more.
🥵16 Trillion in tokenized assets by 2030 is exactly why they don’t want you involved!
Stellar involvement!
Institutional connections
“global liquidity and financial freedom for all” #XLM #Stellar pic.twitter.com/DCci6NlFQZ— Cypress Demanincor (@CDemanincor) July 23, 2023
The report referred to security tokens and digital securities while defining its argument. By projection, blockchain technology is increasing in different industries alongside different market preferences/events/needs/requirements. These projections have led BCG and ADDX to conclude that asset tokenization will increase 50-fold by 2030.
Although asset tokenization might hold potential for game-changing benefits, industry enthusiasts must recognize the various hurdles the industry has to go through before unlocking the colorful future.
