Tokenization of real assets is gaining momentum. And this dynamic should not weaken. In any case, that’s according to Moody’s bank, which believes that the trend towards this crypto option should benefit Ethereum in 2024.
Ethereum is well positioned to benefit from the tokenization of real assets
In the course of this year, the tokenization of real assets has seen an accelerated development. Moody’s believes that this momentum will accelerate further in 2024, and that Ethereum in particular will benefit from this.
Blockchain technology, a key enabler of digital finance, has transformative potential, according to Moody’s expert Cristian Ventricelli. Especially since it facilitates the issuance of digital bonds.
It primarily supports the tokenization of real assets with a potentially positive effect on reducing operating costs. This is exactly where Ethereum should be mining. Because it stands to help solve the interoperability issues that are slowing the adoption of tokenization.
In fact, Ethereum, with its open-source public blockchain, appears to be the platform of choice for blockchain institutions. Through pilot studies and real transactions.
Challenges to overcome
Despite everything, the Moody’s expert acknowledges that there are challenges to be overcome. Asset tokenization, which should benefit the Ethereum blockchain, still faces a major hurdle. This is the lack of a reliable and relevant form of digital currency.
However, the development of tokenized bank deposits and central bank digital currencies (CBDCs) could address these vulnerabilities in 2024. A prospect that could be supported by evolving regulatory frameworks for digital assets.
Analysts speculate that the United States is likely to use the regulatory action to set legal precedents. This indicates the ongoing creation of a global framework for digital assets.
Note that asset tokenization overall has seen significant growth this year, reaching $2 billion on public blockchains. That with the dominance of Ethereum. Experts agree that tokenization, especially tokenization of real assets, represents the future of the crypto ecosystem.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.
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The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.