Real Asset Tokenization Will Propel Ethereum in 2024

Tokenization of real-world assets is gaining increasing momentum, and this dynamic is unlikely to wane. That’s at least what Moody’s bank suggests, believing that the trend towards this crypto option should benefit Ethereum in 2024.

Ethereum, well positioned to benefit from real-world asset tokenization

Throughout this year, tokenization of real-world assets has experienced rapid development. Moody’s believes that in 2024, this momentum will accelerate even further, and that Ethereum, in particular, is poised to profit from it.

According to Cristiano Ventricelli, an expert at Moody’s, blockchain technology, a key catalyst for digital finance, presents a transformative potential. Notably, because it facilitates the issuance of digital bonds.

In particular, it promotes the tokenization of real-world assets with potentially a positive effect on reducing operational costs. This is precisely where Ethereum should benefit, as it positions itself as helping to overcome the interoperability difficulties that hinder the adoption of tokenization.

Indeed, Ethereum, with its open-source public blockchain, emerges as the preferred platform for institutions engaging in blockchain technology. This is through pilot studies and real transactions.

Ethereum Emerges as a Key Blockchain for Tokenized Real-World Assets https://t.co/qK7QacneVj

— Elias Morales (@xeliasmoralesx) December 22, 2023

Challenges to Overcome

Nevertheless, Moody’s expert acknowledges that there are challenges to be addressed. The tokenization of assets, which should benefit the Ethereum blockchain, remains faced with a major impediment: the lack of a reliable and relevant form of digital currency.

However, the development of tokenized bank deposits and central bank digital currencies (CBDCs) could address these vulnerabilities by 2024. A prospect that could be supported by the evolution of regulatory frameworks on digital assets.

Analysts envision that the United States will likely use enforcement measures to establish legal precedents. This suggests a continuation of the establishment of a global framework for digital assets.

It’s worth noting that the tokenization of assets globally has seen substantial growth this year, reaching 2 billion dollars on public blockchains, with Ethereum being predominant. Experts agree that tokenization, especially that of real-world assets, represents the future of the crypto ecosystem.