After ETFs, Moody's, Blackrock and S&P predict tokenisation boom – here's what it's about | Business

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Tokenisation, or the use of blockchain technology to create tokens backed by assets, is rapidly growing, with the Boston Consulting Group forecasting that asset tokenisation as a business opportunity will grow 50 times to US$16 trillion in 2030.

Tokenisation has lowered the barriers of ent5ry for investing in private assets as retail investors in other countries are starting to buy token "shares".Ratings agency Moody's says tokenisation, or using blockchain technology to represent assets, is going to boost inflows into unlisted assets, like private equity

Yet anyone with a discretionary investment and looking beyond the stock market to generate returns may soon come across this asset class, which is joining options such as unit trusts and exchange-traded funds . In the payments space, PayGate and PayFast already offer merchants using their payment systems an option to receive a token from customers instead of storing people's credit card details.The world's largest asset manager, BlackRock, is predicting that tokenisation is"the next generation" for financial markets and the trading of securities. BlackRock launched its first digital-assets fund, the blockchain and tech fund, in April.

 

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