Ah the world of tokenization is becoming more and more of a reality and most likely will tokenized at some point and well that's a scary world when you think about it as tokenized digital assets will be held my massive wealthy companies like black rock and the days of the "You will own nothing and you will love it" could become a reality.
That being said let's have a look at tokenization and what blockchains, assets etc most likely will start to take shape.
Stocks
The first thing most likely to get tokenized will be stocks. For the most part they are already simply digital representations held by another company. Gone are the days when you bought stock and got a paper for it.
This was attempted a few times but backfired quickly as the SEC went after them for example the biggest case of this is when BNB blockchain was offering Tesla stocks as tokenized assets.
Now all these places need to do starting 2025 is to register and then be able to start offering stocks. We could very well see places like Coinbase start to offer up stocks as they are already expanding in futures and derivatives.
Commodities
The next thing to be digitalized will be commodities. Things like oil, gas, timber etc are all commodities that could have a digital representation. While things I personally think wont be as big people can still invest into this overall which can drive up and lower prices across the world.
This will however open up these markets to world wide 24/7 trading which I feel personally is the future for everything moving forward as limited time trading hours including that of banks are a thing of the past.
Real Estate
Real estate and land has been another big one that is thought to be tokenized soon and well this kind of makes sense. Imagine doing a easy transaction without all of the overhead of banks. You know those countless fees that take a $700,000 home to $725,000 home quickly!
With assets like this tokenized cost savings should be attributed to the people buying and selling allowing for faster closings and more money into the hands of the asset owners and less out of third party hands.
What Blockchain
Now the big question is what blockchain is going to be trusted to house all of this information.
Ethereum seems like the safe and steady bet at the moment however major asset owners like Black Rock don't own that blockchain and if there's anything we know these people want more and more assets under their control.
Thus we could see them building out their own chains for such things and we are starting to see this in some companies and even banks. It's only a matter of time I think before these businesses launch their own blockchains that house these assets that they control.
The Middle Ground
For now we are seeing companies like black rock primarily use Ethereum. However there could be other options now as well as many blockchains are starting to focus on RWA (real world assets) and building their systems specially designed just for this to be primed for the future adoption.
Personally for me though I think these projects will either be a flash in the pan for a quick way to build out a RWA but then be replaced in a few years by more internal systems of these companies.
That doesn't mean there isn't value and money to be made in this middle ground sector but it does mean at least I think that they will be replaced and not last long.
What are you thoughts?
*This article is for entertainment purposes only and is not financial advice. Do your own research before investing and understand the risks.
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I also see the securities area as the first to get tokenized on Blockchain. Theres already several bonds that where issued that way and I think it was via an Ethereum L2. Maybe Polygon but I am Not sure anymore.
We've seen social-fi projects like Friend-Tech, that tokenized relationships on a virtual network, with little more than hype as a foundation.
It would be interesting to tokenize virtual friendship with some gamefied components. It perhaps might generate some interesting sociological data.
Tokenization spells transformation across stocks, commodities, and real estate, potentially simplifying transactions and expanding market access. Yet, challenges like regulatory hurdles and market volatility persist. Companies like Coinbase may lead in stocks, while Ethereum appears a solid platform choice, despite potential shifts towards proprietary blockchains by giants like BlackRock. Balancing innovation with security and regulation will still serve as the ultimate recipe for sustainable growth.
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I wonder how this will affect banks? It seems they're being cut off.
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I thing this will be huge, way more transparency as to who holds the certificates.