Tokenization Is on the Horizon
The complete blockchain overhaul of financial markets could happen in the next two decades, according to experts.
Compared to the 6 million years it took for our ape-like ancestors to become modern-day humans, financial markets are evolving at lightning speed.
Pretty soon, it won’t just be crypto that’s trading on the blockchain, but all assets and products — stocks, bonds, ETFs, mutual funds, alternatives and more — that will be tokenized, making transactions quicker, cheaper and more transparent.
“By the time all assets are tokenized becomes a reality, [it will] probably be 10, 15, 20 years from now,”
said David Abner, Northern Trust head of global ETFs and funds, at a recent Financial Times conference.
Getting There
Tokenization is expected to be a two-step process. First is putting already established financial products like ETFs on the blockchain.
Author summary: Tokenization of assets is coming in 10-20 years.