Bernstein: "Tokenization is the Next-Generation Infrastructure... A Multi-Trillion Dollar Market Will Open"

Tokenization technology is emerging as next-generation infrastructure that could fundamentally reshape the financial system and unlock a multi-trillion dollar market, according to new projections.

On the 13th (local time), Benzinga Crypto, a global virtual asset (cryptocurrency) media outlet, reported that global investment bank Bernstein has recently stated in a report that real-world asset (RWA) tokenization has the potential to structurally transform traditional finance. The report emphasized that, "Tokenization is not simply the act of putting physical assets on the blockchain, but rather an approach to improving the very infrastructure of the marketplace."

In particular, the report pointed to the advantages of tokenization as ▲faster settlement speeds ▲enhanced transparency ▲reduced transaction costs ▲expanded access to investments in illiquid assets. Initially, stablecoins and tokenized Treasury Bills (T-Bills) are highlighted as the most suitable structures for connecting with current financial systems.

The report analyzed, "Traditional financial institutions are piloting blockchain-based payment and collateral systems," and added, "The stability and efficiency have already been verified through pilot projects." It continued, "While tokenization is currently being introduced mainly in private blockchain environments, there is a possibility of expansion into decentralized infrastructures as technology and regulatory tools mature."

Specifically, the report identified the main markets that could be impacted by tokenization as ▲the $800 billion private credit (unlisted loan) sector ▲the $400 billion real estate market ▲the multi-trillion dollar trade finance area. The report stated, "If market infrastructure issues can be resolved, the opportunities for tokenization could expand exponentially."

The report also added, "Recently, asset managers, banks, and sovereign wealth funds (SWFs) are actively considering entry into the tokenization market," and projected, "If an environment is created where real-time settlement and compliance are satisfied on-chain, the inflow of institutional funds will become more active."