Banks X Tokenised Asset Investing: An Opportunity for Diversification and Innovation

28.2.2024
Matt Ong
4 MIN READ

Tokenization will impact the future of banking. Boston Consulting Group shows that asset tokenization is projected to grow into a $16.1 trillion opportunity by 2030 (BCG,2022). Banks are paying attention.

Tokenisation will impact the future of banking

Tokenisation will impact the future of banking. Boston Consulting Group shows that asset tokenisation is projected to grow into a $16.1 trillion opportunity by 2030 (BCG,2022). Banks are paying attention.

JPMorgan, Goldman Sachs, HSBC, and BlackRock are four of the key players who are leading the way in the uptake of tokenisation. And now, thanks to our recent partnership with Liv (part of Emirates NBD) they are joining the movement too. 

Like us, they regonise that the next generation of investors are demanding more diversified investment products and have been taking heed of the predictions about the exponential growth forecasted for the tokenized assets sector. 

The data is impressive: 

  • A report from Boston Consulting Group shows that asset tokenisation is projected to grow into a $16.1 trillion opportunity by 2030, representing a 50-fold increase from $310 billion in 2022

  • Tokenized assets are expected to make up fully 10% of global GDP by the end of the decade.

Tokenisation will be key to diversifying offerings for the next generation of investors: 

The next generation of investors are looking for more opportunities beyond traditional investment formats. 

The Bank of America reports that $84 trillion is expected to change hands from the Baby Boomer generation to Gen X and Millennials through 2045. 75% of these investors don’t think it’s possible to build wealth using solely stocks and bonds. 

That’s why 80% of Millennials and Gen X investors are looking specifically to alternative assets. 

This culmination of trends gives rise to a huge potential opportunity for banks and private wealth managers.

Major Players are Betting on Tokenisation

Current predictions for the future of tokenisation are bright. Industry giants like Forbes, The Chartered Alternative Investment Analyst Association (CAIA), and Preqin all agree that tokenised assets will play a formative role in the economy of the future. 

Institutions that embrace tokenising solutions are able to benefit from: 

1. Accessibility-  Previously, providing access to real-world asset investing would have been costly not to mention the endless paperwork and structuring support needed. Thanks to tokenisation, they can not only benefit from lower barriers to entry for their customers but also themselves benefit from a new line of business. 

2. Access - providing clients access to a wider range of assets to diversify their portfolio. From private equity to film rights, clients have the opportunity to invest across a broad range of assets. 

3. Leading the way - standing out in a competitive market by offering their clients exclusive access to investment opportunities.

We are Ctrl Alt. Our advanced technology and expertise in financial engineering are here to help you create bespoke tokenisation solutions.

Combining groundbreaking technology and expert financial engineering, Ctrl Alt is the B2B infrastructure solution provider that makes structuring and investing in tokenised asset classes efficient, cost-effective, and accessible.

Join us.