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Blockchain-Based Tokenized Asset Report from Citibank: Crypto Market Could Shine




Citibank, one of the largest banks in the world, claimed that trillions of dollars of assets could be tokenized in the next 7 years and this would boost the crypto ecosystem. Citi's latest global perspectives and solutions report stated that blockchain-based tokenization of financial assets could be the "killer use case" that the cryptocurrency market needs to reach a flashpoint. The term “killer use case” specifically refers to one of the determining factors in the adoption of a new technology. In the details of the report, Citi emphasized that almost everything of value can be tokenized and suggested that digital currencies would be at the forefront of this tokenized structure. The bank estimates that tokenized digital securities circulating in world economies could reach up to $4 trillion and central bank digital currencies (CBDCs) could reach up to $5 trillion, and half of this could be linked to distributed ledger technology.It is anticipated that $1.9 trillion of the estimated $5 trillion tokenization will consist of debt, $1.5 trillion from real estate, $0.7 trillion from private equity and $0.5-1 trillion from securities.The research indicates that private equity and venture capital funds will be the most tokenized asset class and will capture 10% of the total market, while real estate will account for 7.5% of the total volume. Although the potential for tokenization through blockchains has been mentioned for some time, widespread use of this technology has not yet been realized. Kathleen Boyle, managing editor of Citi GPS, said that the long-awaited potential of blockchain could soon be realized.

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