The Future of Digital Assets: Beyond speculation and towards Fundamentals

The crypto landscape in 2024 promises a dynamic and transformative journey. As institutional involvement grows, technology advances, and novel ideas emerge, the industry is set to overcome challenges and redefine the future of finance and technology. From maturing tokenization projects to the integration of blockchain into physical infrastructure, the next year holds exciting possibilities for the crypto and blockchain space.

We believe that digital assets will keep rising. By 2027, the World Economic Forum (WEF) predicts that up to 10% of global gross domestic product (GDP) could be stored and transacted via Distributed Ledger Technology  (DLT).

https://www.bbva.ch/en/news/towards-a-tokenised-world-by-2030-10-of-global-gdp-will-be-in-tokens/

https://www2.deloitte.com/lu/en/pages/technology/articles/impacts-blockchain-fund-distribution.html

Distributed Ledger Technology (DLT) is revolutionizing the structure of both finance and the internet (web 3.0) with a multi chain future and 5 to 10 chains dominating the landscape.

There are 2 points as key enablers for the wider adoption of digital assets. The regulatory picture will clear, providing more certainty to market participants and opening the door to their real entrance and participation in digital assets markets.

Also, cash on-chain capabilities will appear (either Central Bank Digital Currency, stable coins or alternatives solutions linked with traditional payment systems). However, it will still take time for the market to develop and reach maturity.

Key Drivers

Tokenization:

Boston Consulting Group envisions a $16T global tokenized RWA market by 2030. Bank of America research indicates that the tokenized gold market alone has already surpassed $1B. Bank of America also believes that tokenization could transform financial markets in five to fifteen years and greatly impact how asset values are stored, transferred, and settled.