Chainlink co-founder Sergey Nazarov delivered a keynote presentation at TOKEN49 in Singapore on September 18. Nazarov stated that the value of tokenized real-world assets (RWA) will exceed the value of cryptocurrencies in Web3 in the coming years.
Blockchain Benefits for Traditional Finance
Nazarov noted that traditional finance (TradFi) will become the largest customer of decentralized finance (DeFi). Chainlink's Cross-Chain Interoperability Protocol (CCIP) may play a crucial role in an emerging Internet of Contracts that will link central bank digital currencies, asset chains, consortium chains, and public blockchains.
Working with Legacy Technology
A single set of standards is desirable for such transactions, but TradFi has decades of systems to transact across. Nazarov pointed out the SWIFT network — its enormous user base operates on a single standard.
Overcoming Legal Barriers
In addition, there is a legal barrier between TradFi and Web3, which is gradually being reduced, especially in Asia and the Middle East. When all the kinks are worked out, trillions of dollars will flow into Web3.
Thus, as legal and technical obstacles are removed, the tokenization of real-world assets will significantly impact Web3, transforming the blockchain and traditional financial industries.
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