Since the last edition of the Crypto Research Report published on November 4th, bitcoin is up 149.5% to $34,723 from $13,918.
One of the highlighted topics is whether security tokenization is the next killer application of blockchain. In an interview with Raiffeisen Bank International, the bankers leading their blockchain research hub stated that indeed, by 2030, most securities will have been tokenized.
To gain a deeper understanding of how blockchain technology can transform traditional stock exchanges, this study compiled a dataset of all security token offerings and found that almost $5 billion was raised in 2020. Calculations estimate that the global market capitalization for tokenized securities will surpass $1 billion by the end of Q3 2021, and that approximately $9.5 trillion will be invested in tokenized stocks by the end of 2025.
The authors provide a critical and academic perspective on the legal, technical, and economic aspects of cryptoassets.
Key topics covered in the report:
- One of the largest trends is governments and corporations tokenizing their debt and issuing bonds to investors on blockchains such as Ethereum and Tezos. $6.9 billion in tokenized debt has been successfully issued since 2017.
- The daily trading volume for tokenized traditional stocks such as Tesla (TSLA), Coinbase (COIN), GameStop (GME) and Apple (AAPL) surpassed $4 million in one day on the cryptocurrency exchanges Binance and FTX in early May versus $3.9 million for tokenized securities such as Mt Pelerin, RealT, and TZROP for the whole month of April on the security token exchanges tZERO, Merj, Open Finance Network and TokenSoft
- The global market capitalization for security tokens such as BCAP, Mt Pelerin, RealT, and TZROP is hovering around $700 million. We estimate this to surpass $1 billion by the end of Q3, 2021.