Ripple's Take on Tokenization: A $16 Trillion Opportunity by 2030

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In the realm of digital assets and blockchain, Ripple’s 2023 New Value Report: Crypto Trends in Business and Beyond points to an abundance of opportunities. The most significant among these is the tokenization of global illiquid assets, which, per Ripple’s projections, could unlock a staggering $16 trillion business opportunity by 2030.

Here are the 10 key takeaways from the report:

  1. Crypto technology is inspiring new business models and creating opportunities for more people.
  2. Positive sentiment towards crypto and blockchain has increased over the past six months.
  3. Finance leaders’ confidence in the crypto industry has increased, with 79% expressing high confidence in integrating cryptocurrency solutions into their business.
  4. Over 90% of global finance leaders believe that blockchain and digital assets will have a significant impact on business, finance, and society in the next three years.
  5. Latin America leads in bullish sentiment on institutional crypto use, followed by the Middle East, North Africa, North America, Asia Pacific, and Europe.
  6. The tokenization of global illiquid assets could be a $16 trillion business opportunity by 2030.
  7. The majority of global finance leaders are optimistic about the crypto industry, especially those who have experience with the technology.
  8. About 90% of the world’s central banks are now pursuing Central Bank Digital Currency (CBDC) projects.
  9. Over 90% of global payments professionals believe crypto and blockchain will have a significant impact on finance and business in the next three years.
  10. Financial crime compliance is viewed as a major challenge by over 50% of global payments executives.

The report’s projection of tokenization unlocking a $16 trillion business opportunity by 2030 deserves special attention. Tokenization is the process of converting rights to an asset into a digital token on a blockchain. This means that traditional assets, like real estate, stocks, or commodities, can be ‘tokenized’ and represented digitally on a blockchain. This process vastly improves the liquidity, divisibility, and accessibility of these assets.

In a world where tokenization becomes the norm, vast amounts of value locked up in various asset classes could be released, leading to a potential market of $16 trillion. This could revolutionize how we perceive and handle assets, opening up new opportunities for investment, trading, and democratizing access to wealth.

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