tl;dr
The article discusses the rise of tokenization in 2024, with a focus on the demand for digital currencies, investments in digital asset companies, and stablecoins. It explores the potential impact of a bull market on the demand for tokenized real-world assets and emphasizes the need for a globally s...
Bitcoin and Ethereum as Stepping Stones: PwC Survey Reveals Demand for Digital Currencies and Tokenized Assets
28 November, 2024, by Gavin Lucas
2024 has been the year when tokenization dominated the headlines. With financial titans like Larry Fink calling Bitcoin and Ethereum “stepping stones toward tokenization” and innumerable stories about central banks, governments, and big firms embracing the tokenization of everything, the concept has finally become mainstream.
However, a recent survey by PwC showed that tokenized assets were far down the demand list for wealth managers and institutional investors. Digital currencies, investments in companies that offer digital asset technology, and stablecoins were in the highest demand for both, and in that order.
Preparation for another bull run? Asset and wealth managers said digital currencies (57%), investments in companies in the sector (54%), and stablecoins (50%) had been most in demand in the past 12 months. Institutional investors said these three would be of most interest in the next two to three years.
While the bull market may draw some attention away from investing in tokenized RWAs, the trend toward tokenization will continue unabated. As always, while the majority are focused on the latest meme coin or the new BTC all-time high, the builders focused on blockchain utility will continue to work in the background.
Need for a Globally Scalable Blockchain
In a recent article, the author highlighted Ethereum's current state, pointing out how its fragmented jumble of layer two solutions is causing problems. The same holds true for blockchains; many of the technology’s benefits are lost if users have to move across them via bridges, rollups, and other mechanisms.
A scalable blockchain at the base layer is required to create a genuinely transparent financial system where digital currencies, tokenized assets, NFTs, and everything else can be exchanged peer-to-peer.
A much better alternative to use for tokenizing real world assets is a globally scalable blockchain like BSV. One blockchain capable of handling millions of transactions per second on layer one is a superior solution, allowing all apps to be built on one chain interoperably.
Tagged
Bitcoin SV, BSV, Blockchain, Larry Fink, PricewaterhouseCoopers, PwC, Stablecoins, Tokenization
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