In the realm of digital assets and blockchain, Ripple’s 2023 New Value Report: Crypto Trends in Business and Beyond points to an abundance of opportunities. The most significant among these is the tokenization of global illiquid assets, which, per Ripple’s projections, could unlock a staggering $16 trillion business opportunity by 2030.
Here are the 10 key takeaways from the report:
- Crypto technology is inspiring new business models and creating opportunities for more people.
- Positive sentiment towards crypto and blockchain has increased over the past six months.
- Finance leaders’ confidence in the crypto industry has increased, with 79% expressing high confidence in integrating cryptocurrency solutions into their business.
- Over 90% of global finance leaders believe that blockchain and digital assets will have a significant impact on business, finance, and society in the next three years.
- Latin America leads in bullish sentiment on institutional crypto use, followed by the Middle East, North Africa, North America, Asia Pacific, and Europe.
- The tokenization of global illiquid assets could be a $16 trillion business opportunity by 2030.
- The majority of global finance leaders are optimistic about the crypto industry, especially those who have experience with the technology.
- About 90% of the world’s central banks are now pursuing Central Bank Digital Currency (CBDC) projects.
- Over 90% of global payments professionals believe crypto and blockchain will have a significant impact on finance and business in the next three years.
- Financial crime compliance is viewed as a major challenge by over 50% of global payments executives.
The report’s projection of tokenization unlocking a $16 trillion business opportunity by 2030 deserves special attention. Tokenization is the process of converting rights to an asset into a digital token on a blockchain. This means that traditional assets, like real estate, stocks, or commodities, can be ‘tokenized’ and represented digitally on a blockchain. This process vastly improves the liquidity, divisibility, and accessibility of these assets.
In a world where tokenization becomes the norm, vast amounts of value locked up in various asset classes could be released, leading to a potential market of $16 trillion. This could revolutionize how we perceive and handle assets, opening up new opportunities for investment, trading, and democratizing access to wealth.