Crypto News- This initiative mirrors the broader trend in the crypto sphere, where major banks worldwide are venturing into the tokenization of tangible assets, sparking fervent discussions.
According to a recent report, Citigroup is actively testing the waters by exploring the tokenization of private equity funds on the Avalanche blockchain network.
Tokenized Securities on Avalanche: Major Bank Makes its Move
“A recent simulation by Citigroup Inc. illustrates the potential of tokenizing private equity funds on a blockchain network, potentially paving the way for broader adoption of distributed ledger technology on Wall Street.”
In September 2023, Citi made waves with the launch of its digital asset service, joining forces with Trade Solutions and Maersk to introduce a suite of blockchain-based digital solutions for institutional clients.
The legitimization of blockchain is gaining momentum, particularly after the United States Securities and Exchange Commission’s approval of 11 spot Bitcoin exchange-traded funds (ETFs) on January 10. This approval not only validates blockchain but also opens doors for major asset management firms like BlackRock and Grayscale to offer spot Bitcoin ETF products to their clientele.
On January 12, Staci Warden, CEO of Algorand, emphasized the potential of tokenization in ensuring the longevity of the crypto market.
Global Surge in Tokenized Markets
Tokenization isn’t limited to a single asset class; it extends to various tangible assets like real estate, art, precious metals, vehicles, and carbon credits.
Market analysts at Markets and Markets foresee the global tokenization market reaching $5.6 billion USD by 2026, with North America dominating the landscape. Moreover, in September 2023, Australia’s prominent banking institution, the Australia and New Zealand Banking Group (ANZ), announced its adoption of Chainlink’s cross-chain interoperability protocol (CCIP), further underscoring the industry’s shift towards embracing blockchain technology.
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