Why Tokenization Could Be a Game-Changer for Crypto
A new wave of momentum is building behind tokenization—the process of turning real-world assets into digital tokens on a blockchain—and analysts at Bitwise believe this trend could become one of the most powerful forces in crypto.
In a recent analysis, Bitwise Chief Investment Officer Matt Hougan and Head of Research Ryan Rasmussen argue that tokenization isn’t just a passing narrative. With traditional financial giants like Coinbase and Robinhood entering the space, the shift toward blockchain-based trading of real-world assets is beginning to accelerate.
Hougan, previously skeptical of the concept, now sees the movement as inevitable. “It no longer makes sense that financial markets operate on outdated schedules,” he noted, referring to the rigid trading hours of U.S. stock exchanges. With tokenization, markets could potentially run around the clock—eliminating the inefficiencies of legacy systems.
Driving this optimism is a statement from BlackRock CEO Larry Fink, who earlier this year declared that every financial asset—stocks, bonds, and even funds—has the potential to be tokenized. That kind of endorsement, coming from one of the world’s most influential asset managers, has helped cement tokenization’s legitimacy.
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Bitwise’s report points out that blockchains like Ethereum, Solana, Chainlink, and XRP are in prime position to benefit. While Ethereum currently leads in hosting tokenized assets, the race is still wide open. The analysts recommend gaining exposure to a basket of these altcoins, rather than betting on a single winner.
They emphasize the magnitude of the opportunity: if projections are accurate, the tokenization sector could expand by more than 4,000 times its current size. In that scenario, early positioning in the right digital assets could deliver exponential returns.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
