Although the stable of support of the US dollar continue to dominate the conversation, recent discussions with investors indicate a growing approach to the tokenization of real world assets (RWAS), including shares, bonds, bank deposits and real estate, Bank of America (BAC) in a report on Monday.
According to Bofa, this change marks the beginning of a several -year trip to transactions totally based on blockchain.
The transformation will require a significant development of infrastructure, but promises a new 24/7 access age in global jurisdictions, instantaneous liquidation and improved liquidity, all backed by intelligent contracts that guarantee compliance, according to the report.
The tokenization of real world assets in a block chain implies bringing traditional assets such as real estate, bonds and basic products to the digital field. This process allows fractional property, easier trade and greater accessibility of these assets.
A remarkable example of this evolution is the recent launch of a real estate platform tokenized by the Dubai Land Department (DLD), bank analysts said.
This initiative, which aims to digitize up to $ 16 billion in real estate by 2033, will also introduce the fractional property, expanding access to a kind of previously ilequida assets, analysts said.
Bank of America said that a recurring concern among investors has been the possible interruption of the CITI Transaction Services business (C), which represents about 40% of the bank’s final result, as Blockchain technology gains traction.
While the risk of interruption in traditional sources of income, such as the income from net interest or tariffs, it remains a possibility, there is a growing belief that investors can be underestimating the experience and adaptability of CITI in blockchain technology, Bofa said.
The impulse of tokenization indicates a significant milestone in the adoption of blockchain technology for real world applications, the report added.
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