The Tokenized Asset Coalition (TAC), a membership organization that promotes the institutional adoption of tokenization practices to bring real-world assets to the blockchain, has published its State of Tokenization report. The document explains that 2023 saw the birth of a tokenized risk curve, with tokenization being applied to different asset classes, and predicts that its adoption will grow in 2024.
Tokenized Asset Coalition Predicts Tokenization Advances In 2024
The Tokenized Asset Coalition (TAC, a membership organization that advocates for bringing assets to the blockchain, predicts the advance of tokenization practices on all sides of the asset class spectrum. In its 2024 “State of Tokenization” report, the organization describes the emergence of a new tokenized risk curve that includes different asset classes, ones more present than others in blockchain markets.
Currency is the first asset class discussed, with the report emphasizing the domination of U.S. dollar-based stablecoins and centralized stablecoins over their decentralized equivalents. The report predicts that this will be the year of the surge of euro-pegged tokens and alternative stablecoins.
TAC’s report reveals that the tokenization of U.S. treasuries also grew significantly in 2023, going from $114 million in January to $831 million in December, a growth of over 600% concentrated by products offered by Franklin Templeton and Ondo Finance. Private credit platforms experienced a surge of 89% in total value in 2023, going from $256 to $485 million.
Digital tokenized bond experiments also experienced a boom during 2023, with several organizations announcing bond issuance projects, most organized by traditional financial institutions, with digital platforms for this kind of activity rising in Asia and Europe.
The report predicts that even with regulatory uncertainties, liquidity questions, and infrastructure issues, tokenization will keep growing in 2024. Stablecoins, private credit, tokenized treasuries, and digital bonds will keep evolving, contributing to the overall adoption of tokenized asset markets.
Jeremy Allaire, CEO of Circle, the stablecoin company behind USDC, recently stated that tokenization adoption would boom, explaining he expects institutions like Blackrock to offer tokenized versions of its products this year.
What do you think about TAC’s “State of Tokenization” report? Tell us in the comments section below.
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