Top Factors Driving the Tokenization Market in 2023

Dacxi Chain
3 min readMay 3, 2023
Source: Openpr

The global Tokenization market is projected to reach USD 2709.9 million by 2028 from an estimated US$ 1301.6 million in 2022, at a CAGR of 13.0% during 2023 and 2028.

The future of tokenization is quite bright because blockchain technology is always evolving. In order to increase traceability and liquidity, it involves turning tangible assets (such as real estate, precious metals, art, etc.) into their digital equivalents (tokens) via a blockchain. This transcends cybersecurity in a big way.

TOP FACTORS DRIVING THE TOKENIZATION MARKET

Blockchain technology enables robust data protection when a token is issued with access control, automated rights transfer, and distant decentralized file storage. When a system is tokenized, it means that only users who have been granted access can use unique tokens to access it. The ability to alter or revoke data access privileges is entirely within the administrative control of the system. To ensure that data is processed in accordance with the previously stated rights, token-based automatic rights transfer involves assigning specific rights, such as read or write access. The market for tokenization is anticipated to develop as a result of this factor.

Tokenization shortens transaction times by enabling 24x7 trading and launching smart contracts based on predetermined criteria. As a result, settlement times are shortened from the current maximum of T+2 to nearly instantaneous transactions. As a result, counterparty risk is lower during transactions and there is less chance of a trade break. Because all necessary information is stored in a smart contract, transactions can be completed without the dreaded red tape thanks to asset tokenization. In this approach, transactions are both accelerated and unfiltered. The market for tokenization is anticipated to develop as a result of this factor.

When assets are tokenized, they can be split up into smaller chunks, allowing potential investors to purchase a portion of a single share. Separating securities, commodities, or other assets can help investors manage their portfolios more efficiently while also providing better affordability and flexibility. The market for tokenization is anticipated to develop as a result of this factor.

Personal data is owned and controlled by each individual or entity through a decentralized identity. When it issues a token, blockchain technology generates a special address for data security. Tokenization allows authorized users to access the system in exchange for unique tokens. It provides users with total control over data by enabling them to modify or revoke their access as necessary. By using tokenization, they can provide the information required for use cases and verification. The market for tokenization is anticipated to develop as a result of this factor.

TOKENIZATION MARKET SHARE ANALYSIS

The North American area is predicted to contribute the biggest revenue share during the projection period. Digital technology was being adopted at the fastest rate in the region. The majority of Americans use online payment methods while doing business. Additionally, North American market trends, like buy now pay later for cryptocurrencies, have an impact on the regional market.

View Full Report
https://reports.valuates.com/market-reports/QYRE-Auto-26Y3935/global-tokenization

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