coindesk.com
Crypto industry heavyweights want to encourage more groups to bring traditional financial assets on a blockchain with a new advocacy group for tokenization unveiled Wednesday.
The Tokenized Asset Coalition aims to bring the “next trillion dollars of assets” on-chain through education, advocacy and fostering adoption of public blockchains, asset tokenization and institutional decentralized finance (DeFi) in the broader financial space, a press release said.
Read more: The Trillion Dollar Crypto Opportunity: Real World Asset Tokenization
The group’s founding members are crypto exchange Coinbase, stablecoin issuer Circle, layer 2 network Base, DeFi lending platforms Aave Companies, Centrifuge, Credix, Goldfinch and real-world asset data platform RWA.xyz.
The new group comes as asset tokenization has become a trend within the crypto space. The term stands for transforming old-school financial assets such as bonds, private credit or real-estate – often referred to as real-world assets – into tokens on a blockchain.
Tokenized assets have the potential to disrupt the current financial infrastructure and create a more efficient system, Bank of America (BAC) said. The market for tokenized assets could mushroom to $16 trillion by 2030, according to a Boston Consulting Group report.
“The Tokenized Asset Coalition believes that public crypto rails offer superior efficiency, cost savings and transparency compared to legacy systems,” the press release said. “By fostering collaboration, education and the development of on-chain infrastructure, the Coalition aims to address the inefficiencies, lack of transparency and fragmentation inherent in traditional financial systems.”