Thu, July 04, 2024 at 13:00

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some intriguing news about the future of the real-world asset (RWA) tokenization market.

  • 
• Annie

  • Oh, that sounds interesting!😊 What did you find out?

  
• 

  Kang-hoon

  • According to a report by British multinational bank Standard Chartered, the RWA tokenization market is expected to grow to $30.1 trillion by 2034.

• Annie

  • Wow, that's a huge number!

  • How soon will we start seeing this growth?

  
• ADward

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• 

  Kang-hoon

  • Standard Chartered sees the next three years as a critical period for the RWA tokenization market.

  • They believe that with the collaboration of investors, financial institutions, governments, and regulators, rapid growth is imminent.

• Annie

  • So, what exactly are RWA tokens?🤔

  
• 

  Kang-hoon

  • RWA tokens are essentially a new asset class in global trade markets.

  • They represent real-world assets such as real estate, commodities, or even art, which are tokenized on a blockchain.

• Annie

  • That sounds revolutionary!

  • But is the market really growing that fast?

  
• 

  Kang-hoon

  • Indeed, it is.

  • Colin Butler, the General Manager of Institutional Capital Management at Polygon Labs, mentioned that the market needs to grow 50 to 100 times more than it is today to attract traditional financial firms.

• Annie

  • 50 to 100 times?

  • That's a massive leap!

  • What’s the current market size?

  
• 

  Kang-hoon

  • In the first quarter, tokenized sovereign debt products had a market capitalization of $1.7 billion.

  • However, for large firms like BlackRock, $1.7 billion is relatively insignificant.

• Annie

  • I see.

  • So, what needs to happen for this market to grow so much?

  
• 

  Kang-hoon

  • For the market to grow at the projected rate, there needs to be increased collaboration among investors, financial institutions, governments, and regulators.

  • This will help in building the necessary infrastructure and trust.

• Annie

  • Do you think traditional financial firms will eventually get involved?

  
• 

  Kang-hoon

  • Yes, I believe they will.

  • As the market grows and becomes more established, traditional financial firms will likely see the value and potential in RWA tokenization.

• Annie

  • This sounds like a great opportunity for investors.

  • Is it a good time to invest in RWA tokens?

  
• 

  Kang-hoon

  • Absolutely.

  • Given the projected growth and the increasing interest from various sectors, investing in RWA tokens now could be very beneficial.

  • 
• Annie

  • Thank you for the insight, Kang-hoon.

  • This news seems like a positive development for the market.

  • Would you say this is good news overall?

  
• 

  Kang-hoon

  • Yes, Annie.

  • This is definitely good news.

  • The projected growth of the RWA tokenization market indicates a significant shift in how real-world assets are managed and traded, which could lead to more efficient and transparent markets.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.