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Laxman Pai, Opalesque Asia: Demand for tokenized assets could reach US$30.1 trillion by 2034, according to a
report.
The report on tokenized real-world assets (RWA) focusing on trade finance
published by Standard Chartered and Synpulse predicts that trade finance assets
could become one of the top three tokenized assets globally, at 16% or $4.8
trillion. The segment will be amongst the top three classes of tokenized assets
globally.
According to the paper, Real-World Asset Tokenisation: A Game Changer for
Global Trade, global trade will reach $32.6 trillion globally by 2030 and this,
"combined with growing industry digitization and the specific features of real-world
trade finance assets, make it an ideal category to originate tokens".
The so-called trade finance gap is $2.5 trillion, representing slightly more than
10% of the global merchandise trade of $24 trillion in 2023.
However, the bank observes that only 80% of the export market is currently
financed, so there could be another 10% undisclosed trade finance gap. In that
case, the gap is closer to $5 trillion and growing, given global trade is forecast to
reach $32.6 trillion by 2030.
As an investable asset class, trade finance is attractive. Default rates are typically
a fraction of one percent. Even in default cases, the recovery rates are high -
close to two-thirds or almost 100% where there's a guarantee.
Currently, the tokenized assets sector mainly comprises traditional assets like US
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