Tokenization: Mastercard Wants in at $30T, or $3T
Tokenization will be big, but just how big is anyone's guess
Tokenization will be big, and Mastercard (MC) and Ava Labs want in on this multi-trillion dollar market.
MC is adding its weight to the already large group of major financial institutions that see tokenization’s potential and are actively researching how to harness the technology. Its relationship with Ava Labs is its way of jump-starting its research.
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How big the market will be depends on the observer, but calling it a market around $10 trillion would seem a safe bet and big enough for the likes of MC to get excited about.
The tokenization market size estimates are all over the place: BCG - $16 trn, Morgan Stanley - $3 trn, Citi - $4 trn, Roland Berger - $10 trn.
My favorite mainstream source estimate is Standard Chartered’s, which predicts the tokenization market will reach $30.1 trillion by 2030.
The variability in these numbers is to be expected because each observer is looking at a different market segment. Some include a significant component for real estate transactions, an enormous potential pot of gold for tokenization, though a tough market to crack.
Ultimately, it is anyone's bet how much tokenization’s benefits of faster settlements, fractional ownership, and improved transparency are worth.
Don’t let the variability in market estimates turn you off tokenization.
The fact that people don’t know what it’s worth is a good sign because it shows how disruptive it may be in reshaping the financial landscape.
After all, $3 trillion for a low estimate isn’t bad!
👉Key Points on Tokenization For Everyone
🔹 There are business opportunities that financial institutions can take advantage of within the blockchain ecosystem before regulation is fully consolidated.
🔹 Blockchain is not the same as crypto. The range of applications is wider, making blockchain a technology that can be more applicable to day- to-day business, with the intention to become “invisible” to the end user.
🔹 Major financial institutions have begun exploring the technology for specific applications and testing how they adapt to it, increasing trust and confidence.
🔹 There are several benefits to this technology that create a more efficient financial system, and Latin America, more specifically, could especially stand to benefit from it.
🔹 The Latin American landscape presents an opportunity to close socio-economic gaps in the regional economy.
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