The Tokenized Asset Coalition (TAC), an organization dedicated to promoting the institutional adoption of tokenization practices to bring real-world assets to the blockchain, has released its State of Tokenization report. The report highlights the emergence of a tokenized risk curve in 2023 and predicts further advancements in tokenization throughout 2024.
Tokenization Across Asset Classes
In its 2024 "State of Tokenization" report, TAC discusses the progress of tokenization practices across various asset classes. The report emphasizes the dominance of U.S. dollar-based stablecoins and centralized stablecoins over their decentralized counterparts. However, it predicts that euro-pegged tokens and alternative stablecoins will experience significant growth in 2024.
Tokenization of U.S. Treasuries and Private Credit Platforms
TAC's report reveals substantial growth in the tokenization of U.S. treasuries in 2023. The value of tokenized U.S. treasuries increased from $114 million in January to $831 million in December, representing a growth rate of over 600%. This growth was primarily driven by products offered by Franklin Templeton and Ondo Finance.
Additionally, private credit platforms experienced an 89% surge in total value, going from $256 million to $485 million in 2023.
Rise of Digital Tokenized Bonds
The report also highlights the significant growth of digital tokenized bond experiments in 2023. Numerous organizations, particularly traditional financial institutions, announced bond issuance projects. The emergence of digital platforms supporting such activities was particularly notable in Asia and Europe.
The Future of Tokenization
Despite regulatory uncertainties, liquidity concerns, and infrastructure challenges, the report predicts that tokenization will continue to grow in 2024. The evolution of stablecoins, private credit, tokenized treasuries, and digital bonds will contribute to the overall adoption of tokenized asset markets.
Jeremy Allaire, CEO of Circle, the company behind stablecoin USDC, expects tokenization adoption to boom in 2024. He anticipates that institutions like Blackrock will offer tokenized versions of their products this year.
What are your thoughts on TAC's "State of Tokenization" report? Share your opinions in the comments below.
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By: Sergio Goschenko
Title: The Tokenized Asset Coalition Predicts the Growth of Tokenization in 2024
Sourced From: news.bitcoin.com/tokenized-asset-coalition-expects-tokenization-to-grow-in-2024/
Published Date: Sat, 20 Jan 2024 05:30:36 +0000