Boston Consulting Group (BCG) believes that blockchain technology presents a massive business opportunity by 2030.
The global consulting giant says in a new report that “on-chain asset tokenization” can help address the challenge posed by asset illiquidity.
According to Boston Consulting Group, the value of tokenized assets worldwide will exceed $15 trillion by the next eight years, an amount estimated to be equivalent to 10% of the global gross domestic product then.
“The total size of illiquid asset tokenization globally would be $16 trillion by 2030.”
The value of tokenized assets is currently at $310 billion.
The global consulting giant says that one of the characteristics of illiquid assets which include land, fine art, commodities and private equity is they are typically undervalued.
“All else being equal, illiquid assets typically trade at a discount vs. liquid assets, and are characterized by a high stock-to-flow ratio, lower trading volumes and imperfect price discovery vs liquid assets.”
According to Boston Consulting Group, asset tokenization assists in unlocking the value of illiquid assets.
“On-chain asset tokenization presents an opportunity to obviate many of these barriers of asset illiquidity as well as the current modality of traditional fractionalization.
Onchain asset tokenization helps reimagine the end-to-end process of finding and matching investors with investment opportunities, and the subsequent secondary market opportunities once an investment has been made.”
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