Bank of America (BAC) View tokenization, the creation of a virtual investment vehicle in the block chain linked to a tangible asset, such as the next phase in the evolution of investment products, describing it as “Mutual Fund 3.0,” said the Wall Street bank in a Friday report.
Just as mutual funds emerged for the first time in 1924 and funds quoted in exchange (ETF) Restabbed by investments in the 2000s, blockchain technology could support a new generation of financial vehicles, wrote analysts led by Craig Siegenthaler.
Real world asset (RWA) Tokenization advances rapidly. The Bank said companies such as Securitize are working with managers, including Blackrock. (Blk)Apollo, Kkr and Hamilton Lane to issue tokenized funds. WISDOMTREE ASSETS ADMINISTRATOR (WT) He built his own tokenization engine, giving him the ability to offer more than a dozen tokenized funds.
According to the data provider RWA.XYZ, the value of real words assets represented in the chain exceeds $ 28 billion, largely in private credit and treasure bonds.
Even so, the regulation remains a wind against. The acts of genius and clarity address the stable, but leave many questions about unsolved tokenized funds. Even so, the Bank argues, the advantages of tokenization will boost adoption over time despite limited access for US investors today.
The case of tokenized actions is weaker because US corridors already offer shares without commissions and a quoted background (ETF) Trade after Robinhood (HOOD) Disruption in 2019, analysts wrote.
This change pushed companies to monetize customer cash and orders, causing the tokenized versions of these assets to be less convincing, bank analysts said. But the tokenized monetary market funds, driven by intelligent contracts, could fly that cash sweep economy and open new income models.
The distribution is still the bottleneck. Platforms that offer tokenized funds are still rare, although online runners such as Robinhood, Public and Etoro (ETOR) They are well positioned given their cryptographic businesses and their youngest customers base oriented to AutoCustody. Coinbase (COIN) It can also arise as a partner as it expands beyond pure cryptography, the report added.
Bank of America hopes that the funds of the tokenized money market lead the adoption thanks to their attractive yields in relation to Stablecoins, which cannot pay interest under the genius law, with private credit and high performance that can follow.
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