Tokenization of Real-World Assets
Introduction
Blockchain networks initially were more like closed-loop systems, meaning the value created and traded on-chain was confined to crypto native assets. As technology has developed, blockchains and the real world are becoming more intertwined. Crypto protocols and TradFi institutions alike are looking to tokenize real-world assets and benefit from transaction efficiencies, cost savings, interoperability, composability, and transparency. Protocols have already begun bringing assets like dollars and treasuries on-chain while some of the largest financial institutions in the world have started experimenting with tokenization and in-house blockchains. The line between the two will likely continue fading as technology and adoption grows, but it’s becoming increasingly likely the future of finance will move onto blockchain rails.
