Discussions with market participants reveal a growing interest in the digital transformation of real assets, such as stocks, bonds, and real estate. This could signify a new phase in the evolution of financial technology.
A New Era in Blockchain Infrastructure
According to a report by Bank of America, significant investment in infrastructure is essential for successful transformation. The emergence of a global asset transfer system operating 24/7 could become a reality. The application of smart contracts will ensure smooth integration and compliance in transactions.
Dubai’s Digital Property Platform
Notably, the report mentions the initiative by the Dubai Land Department, which aims to transition $16 billion worth of real estate into a digital format by 2033. This will facilitate broader investment access through fractional ownership, simplifying the buying and selling of assets.
Impact on the Banking Sector
The report analyzes the impact of blockchain transactions on existing financial institutions. Particularly, a potential shift in Citi’s transactional services, which currently accounts for around 40% of the bank’s profit, is highlighted. Some experts believe that the bank’s knowledge and adaptability to blockchain technology may be underestimated by investors.
Thus, the tokenization of real-world assets could represent a crucial step in utilizing blockchain technologies in the real world. It is anticipated that this will lead to structural changes within the financial ecosystem.
