Wealth Creation through Asset Tokenization

Asset Tokenization can 10x the Crypto Market!

A Boston Consulting Group (BCG) report predicts that the total size of illiquid asset tokenization globally would be $16 trillion by 2030.

Considering that the total market capitalization of Crypto is currently less than 1.5 trillion, that's an amazing 10x opportunity!

1. What are Illiquid Assets?

From a financial perspective, Assets can be either Liquid or Illiquid.

Liquid Assets are those that can be easily converted to cash.

Examples: Stocks, Bonds, Gold, Agricultural commodities, etc.

Illiquid Assets are those that cannot easily be converted to cash.

Examples:

1. Art: Paintings, Sculptures, and other forms of Fine Art.

2. Carbon Credits: Tradable certificates representing the right to emit a certain amount of carbon dioxide or other greenhouse gases.

3. Copyright Licenses: Legal rights granted to the creators of original works, such as music, movies, books, and software.

4. Private Equity: Investments in startups and companies that are not publicly traded on a stock exchange.

5. Rare Collectibles: Unique items like vintage cars, rare coins & stamps, luxury watches & jewellery, and memorabilia.

6. Real Estate: Properties including residential, commercial, industrial, and agricultural.

7. Structured Products: Complex financial instruments such as Market-Linked Investments, Structured Notes, Derivative Products, Insurance-Linked Securities, and Collateralized Debt Obligations.

8. Luxury Liquor: High-end Whisky Casks and Wines.

2. What is Tokenization?

Tokenization is the process of converting the economic rights of an asset into digital tokens on a blockchain. These digital tokens represent a share or fraction of the underlying asset.

Effectively this brings the asset to the Crypto world where it can be fractionalized and traded 24x7 by a global audience.

The biggest advantages of Tokenization are:

1. Democratization of investments by lowering entry barriers.

2. Enabling small & individual investors to participate in markets that were previously accessible only to wealthy individuals or institutional investors.

3. Increased Liquidity and Market Efficiency

4. Bringing liquidity to markets that are traditionally illiquid.

5. Bringing greater market efficiency and price discovery.

3. How does Tokenization Create Wealth?

Tokenization offers new opportunities for investing in various asset classes. Here are some statistics on the market value of tokenizable assets:

• Art: US$ 580 Billion

• Carbon Credits: US$ 25 Billion

• Copyright Licenses: US$ 173 Billion

• Private Equity: US$ 11.7 Trillion

• Rare Collectibles: US$ 370 Billion

• Real Estate: US$ 326 Trillion

• Structured Products: US$ 7 Trillion

• Whisky Casks: US$ 300 Billion (5 years)