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Polygon exec predicts tokenised assets will disrupt global finance

Polygon exec predicts tokenised assets will disrupt global finance

GrafaGrafa2024/09/19 02:35
By:Liezl Gambe

Colin Butler, Global Head of Institutional Capital at Polygon Labs, believes that real-world asset tokenisation may become the “killer app” for cryptocurrencies, offering substantial benefits to financial institutions.

According to Butler, tokenisation could dramatically reduce costs and settlement times for financial firms, making it increasingly difficult for traditional institutions to ignore the potential of Blockchain technology.

"This technology is a massive disruptor for the entire global financial system," Butler stated during an interview.

He explained that the ability to cut costs enables firms to explore new business models that were previously unfeasible due to slim margins.

For example, fund managers, who often operate with narrow profit margins, could see a significant reduction in operational expenses with the adoption of tokenised assets.

Butler highlighted that tokenisation offers "a much better form of collateral for the global financial system," applicable to foreign exchange trades, options, stocks, and bonds.

Financial institutions of all sizes could benefit from the reduced costs and quicker settlement times introduced by tokenised assets like bonds, U.S. Treasury bills, and stablecoins.

The executive stressed that embracing blockchain-based assets could provide a significant competitive edge for both small firms and large international clearing houses.

Butler also pointed out that the real-world asset tokenisation market is projected to grow substantially, representing a $30 trillion opportunity as assets move on-chain.

While the potential is enormous, some experts are more conservative in their estimates.

Real Vision’s chief crypto analyst Jamie Coutts projected that the real-world tokenised asset market could reach $1.3 trillion by 2030, still a significant amount of capital that could reshape digital asset markets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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