A new advocacy group for tokenization was unveiled on Wednesday, and its goal is to persuade more organizations to tokenize their traditional financial assets.According to a press release, the Tokenized Asset Coalition seeks to promote institutional decentralized finance (DeFi), asset tokenization, and public blockchain adoption in the broader financial sector. It also intends to bring the “next trillion dollars of assets” on-chain through education and advocacy.
The organization was founded by the cryptocurrency exchange Coinbase, the stablecoin issuer Circle, the layer 2 network Base, the DeFi loan platforms Aave Companies, Centrifuge, Credix, Goldfinch, and RWA.xyz.The launch of this new group coincides with the rise of asset tokenization as a trend in the cryptocurrency world.The phrase refers to the conversion of traditional financial assets, also known as real estate, bonds, and private credit, into tokens on a blockchain.
According to Bank of America (BAC), tokenized assets have the ability to upend the current financial system and establish a more effective one.A research from the Boston Consulting Group predicts that by 2030, the market for tokenized assets might swell to $16 trillion.
“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.”